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Dogecoin’s price was below the $0.000014 mark on June 11 as bears forced the downtrend to 40-day lows, but on-chain data trends signal cooling selling pressure.
Dogecoin Price Hits 40-Day Low
The global memecoin markets have received a fair amount of traction in the recent weeks. But curiously, a rare trading pattern has emerged which has seen investors shift focus toward mid-range memes at the expense of mega-cap assets like Dogecoin (DOGE) and Shiba Inu (SHIB).
The chart above shows that Dogecoin price downtrend is now approaching danger zones. Since the downtrend began around May 26, DOGE price has now lost 22.54%, as it tumbled below $0.0137 at the time of writing on June 11.
Similar to SHIB, DOGE price has been stuck in a downward trajectory to since the last week of May. Meanwhile the likes of PEPE scored new all-time highs, and Floki Inu (FLOKI) also recorded significant gains in the aftermath of the Ethereum ETF approval.
As Dogecoin price struggles for momentum, on-chain data shows that existing holders are now growing increasingly unwilling to sell.
DOGE Long-term Holders Have Cut Selling Pressure by 98% This Week
After nearly two weeks of intense bearish pressure, recent on-chain data trends suggest that DOGE sellers are now showing fatigue signals. If sustained, this move could possibly spark a rebound phase in the days ahead.
Santiment’s Age Consumed chart tracks the intensity of selling pressure coming from long-term investors. It multiplies the total daily number of DOGE coins traded by the number of days since they were last moved.
Essentially the Age Consumed metric spikes when a large number of long-term holders are actively selling, and it declines when the selling pressure cools.
As illustrated above, Dogecoin Age Consumed hit 663 billion on June 7, sparking the latest wave of price dips recorded during the crypto market crash in the aftermath of the US Non-Farm Payrolls data released on Friday.
But this week, the Dogecoin selling pressure has cooled off considerably. The latest data shows that DOGE Age Consumed only reached 11 billion on June 11, marking a whopping 99% decline from last week’s peak selling activity.
This suggests that with Dogecoin prices now trending at 40-day lows, the majority of long-term holders are now unwilling to sell at the current unfavorable prices.
Dogecoin Price Forecast: $0.13 Support to the Rescue
Drawing insights from the Dogecoin on-chain data analysis above, DOGE’s price could be on the verge of a major rebound phase if the 98% decline in selling activity persists.
The Bollinger band technical indicator also affirms this optimistic DOGE price forecast.
As seen above Dogecoin price has now slipped below the critical support level at $0.14. Strategic investors on the sidelines could consider it positive signal that the bottom is near and start to enter new positions in the days ahead.
In effect, Dogecoin price now looks likely to hold firm at the $0.013 support level as the week unfolds.