Dogecoin (DOGE) has been on a rollercoaster ride in recent months. However, a new trend suggests a shift in investor sentiment.
According to IntoTheBlock, DOGE’s Holding Period has surged by a staggering 387.03% in the last week. This indicates investors are adopting a HODLing strategy, holding their tokens despite price fluctuations. Less movement suggests minimal selling pressure, potentially leading to more stability for DOGE.
Price Drop, But Recovery Possible For DOGE
While the Holding Period is a positive sign, DOGE’s price remains down. Currently trading at $0.12, the coin has seen a 20.78% decrease in the last 30 days.
However, a decline in trading volume during the same period suggests the prolonged price drop may be easing. This could pave the way for a recovery from current lows.
Technical Indicators Flash Bullish Signs For DOGE
Technical analysis also offers a glimmer of hope. The DOGE/USD 4-hour chart reveals a positive development on the Awesome Oscillator (AO), a momentum indicator. This suggests increasing momentum for DOGE. The Relative Strength Index (RSI) has also risen, though it hasn’t broken past the neutral zone yet. This implies the price might trade sideways around $0.12 for a while. However, a break above this level could trigger a further rise.
Read Also: Dogecoin Wobbles: Will the Meme Coin Bounce Back?
Fibonacci Levels: Potential Price Targets
The Fibonacci Retracement indicator points to potential price targets for the the meme coin. The 61.8% Fib level sits at $0.13, suggesting DOGE could climb towards that point. In a strong bullish scenario, the price could even reach $0.15.
One metric raises a cautionary flag. The DAA (Daily Active Addresses) metric gauges user participation.
Currently, Dogecoin’s price DAA deviation sits at -79.13%. This indicates lower network activity compared to the recent price increase. While the rise in Holding Period is encouraging, increased user participation would further strengthen the DOGE recovery narrative.
