Holders of Dogecoin (DOGE) who have maintained their positions for an extended period may now be looking to sell. A significant shift in the movement of DOGE coins that were previously held for long durations indicates changing sentiments among these long-term investors.
This analysis by BeInCrypto delves into the possible implications resulting from the activity of these previously inactive coins.
Surge in Dogecoin’s Age-Consumed Reaches 16-Month Peak
Recent on-chain data reveals that Dogecoin’s Age Consumed, a metric that monitors the movement of long-term held coins, surged over 3,000% on Thursday, hitting 1.02 trillion — the highest level since June 2023.
Read more: Dogecoin (DOGE) Price Forecast 2024/2025/2030
An increase in the Age Consumed of an asset suggests that previously inactive coins or tokens have recently been transferred or traded.
Generally, the revival of dormant coins indicates renewed interest from long-term holders, which many view as a bullish sign. However, for this bullish trend to be sustainable, the influx of newly circulated coins needs to be matched by adequate demand to soak up the increased supply.
Nonetheless, a review of the DOGE/USD 12-hour chart reveals a lack of such demand in the market. Currently, its on-balance volume (OBV), used to gauge the buying and selling volume, is trending downward at 507.90 billion. A declining OBV typically indicates that selling pressure is surpassing buying pressure.
Moreover, the meme currency’s negative Balance of Power (BoP) further confirms the low demand for DOGE. This measure, which evaluates the strength of buyers against sellers in the market, stands at -0.34 at the time of writing. A negative BoP implies that sellers have the upper hand and are trying to drive the asset’s price down.
DOGE Price Forecast: Potential 41% Drop?
As it stands, Dogecoin’s price is at the support level of $0.13 and may decline beyond this point due to increasing selling pressure. A drop below this threshold will redirect the meme coin’s focus to the next significant support at $0.11. Should this level fail to hold, Dogecoin could fall to $0.08, marking a 41% decrease from its current value.
Read more: How To Purchase Dogecoin (DOGE) and Everything You Need To Know
Conversely, if demand increases, it may counterbalance the newly circulated coins, allowing the $0.13 support to hold. This scenario could pave the way for Dogecoin’s price to attempt a rally towards $0.15.
Disclaimer
This price analysis article adheres to the Trust Project guidelines and is provided for informational purposes only. It should not be construed as financial or investment advice. BeInCrypto aims for accurate and impartial reporting, but please be aware that market conditions can change without warning. Always do your own research and consult with a professional before making any financial decisions. Note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
