Dogecoin Holders Stay Resilient Amid Price Dip
On-Chain Data Highlights Increased Holding Times and Decreased Circulation
Technical Indicators Suggest a Bullish Breakout May Be Imminent
Despite a recent price decline from $0.43 to $0.37, Dogecoin (DOGE) holders have demonstrated notable resilience by retaining their positions. On-chain metrics indicate that this consistent holding behavior may signal an impending price increase for the popular meme cryptocurrency.
Dogecoin Holding Time Metrics Hit Record Highs
Data from IntoTheBlock shows a significant rise in the Coin Holding Time metric, which has surged by over 100%. This metric, which tracks the length of time coins remain unmoved, highlights growing confidence among investors.
“An increase in holding time often serves as a bullish indicator,” says IntoTheBlock’s analysis. “The data suggests investors are accumulating DOGE rather than selling.”
Further support comes from Santiment’s on-chain data, which reveals a sharp drop in Dogecoin’s circulation—from 5.88 billion to 969.06 million coins.
“Such a significant reduction in circulation usually correlates with lower selling pressure,” Santiment reports. “This trend hints at a potential supply squeeze in the market.”
Bullish Technical Patterns Emerge
A 4-hour chart analysis identifies a bull flag formation, a pattern that historically precedes a continuation of an upward trend after consolidation. This setup mirrors previous patterns that led to a 100% price rally for DOGE.
Near-Term Target and Caution
The convergence of strong holding metrics, reduced circulation, and bullish technical signals points to a potential upward target of $0.50. However, analysts warn that a change in investor behavior could result in a pullback below $0.30.
As DOGE continues to consolidate, the firm stance of its holders, combined with promising on-chain data, suggests the possibility of an upward breakout in the near future.
