Leading meme coin Dogecoin (DOGE) has seen a notable price surge over the past week, outperforming its top meme coin rivals. During this period, DOGE has soared by 23%, outpacing Shiba Inu (SHIB), which has risen 14%, and Pepe (PEPE), which has gained 4%.
With DOGE’s short-term holders (STHs) extending their holding periods, the meme coin’s price could continue its upward trend in the short term.
Dogecoin’s Short-Term Holders Fuel Rally
According to IntoTheBlock, DOGE’s STHs (those who have held the asset for less than one month) have increased their holding time by 110% over the past month.
When STHs of an asset increase their holding time, it signifies a shift in investor sentiment from short-term speculation to a more long-term investment approach. This reduces the overall selling pressure on the cryptocurrency and can help stabilize prices and prevent sharp declines.
Short-term holders (STHs) play a critical role in price dynamics, as they react quickly to market movements and drive immediate fluctuations through their trading activities. When STHs extend their holding periods, they reduce selling pressure, helping to stabilize the asset’s price and potentially create conditions for upward momentum.
Additionally, DOGE’s positive funding rate, which stands at 0.0011% at press time, supports this bullish outlook. This is the periodic fee paid between traders in perpetual futures contracts to keep the contract price aligned with the underlying asset’s spot price.
A positive funding rate means long positions (buyers) are paying short positions (sellers), indicating bullish sentiment and higher demand for leveraged longs.
DOGE Price Prediction: Short-Term Holders Must HODL
If DOGE’s STHs maintain their hodling strategy, its price could extend its upward trend and touch the four-year high of $0.48.
However, a negative shift in strategy will invalidate this bullish projection. If this cohort of DOGE holders begins to sell for profit, it could cause the meme coin’s price to plunge to $0.299.
Disclaimer
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