Dogecoin (DOGE) has recently seen sideways movement in its price, as market conditions continue to fluctuate. At the time of writing, DOGE is priced at $0.223, struggling to break out of a consolidation phase.
While the price action remains subdued, key indicators suggest that crucial investors may help the token recover its losses from July.
Dogecoin Investors Are Turning Bullish Again
A closer look at the HODLer net position change shows that long-term holders (LTHs) are becoming more bullish. The red bars, which typically indicate selling pressure, have nearly disappeared, signaling a shift toward accumulation rather than distribution.
The switch from selling to accumulating could set the stage for Dogecoin’s recovery in the coming weeks. With fewer LTHs liquidating their positions, the market is expected to experience less downward pressure. This shift, coupled with the ongoing accumulation, reflects the faith that key holders still have in Dogecoin’s future prospects.
Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.
Looking at the broader market, the supply of Dogecoin that was last active between three and six months has seen a significant increase. Over the last two weeks, mid-term holders have added 4.9 billion DOGE to their holdings, which is worth more than $1.97 billion.
The fact that mid-term holders are accumulating DOGE signals that many are confident about its future price movements. These investors are likely waiting for favorable market conditions to take advantage of any potential price surge.
DOGE Price Could Look At Recovery
Currently trading at $0.223, Dogecoin must hold the support level of $0.222 to maintain its recovery prospects. The recent trend indicates that DOGE is aiming to bounce off this support level and target the $0.241 resistance. A successful breakout above this resistance could trigger a rally toward $0.273, helping Dogecoin recover the losses seen in July.
If Dogecoin manages to break past $0.241 and establish it as support, it would solidify the bullish momentum. In this scenario, the next key target would be $0.273, offering further gains for investors who have been holding the asset. The positive sentiment from mid-term holders could help drive this price movement.
However, should Dogecoin fail to hold $0.222 and drop below it, the price may revisit the $0.209 or even $0.199 level. A further decline would invalidate the current bullish outlook, extending the losses seen in recent weeks. As a result, maintaining the $0.222 support is crucial for any chance of recovery.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
