- Dogecoin (DOGE) price saw a slight increase this week, dispelling initial concerns from recent court documents.
- Long-term DOGE investors have been increasing their holdings, signaling confidence in the coin’s future.
Dogecoin’s price witnessed a subtle rise this week, settling at $0.062, a shift seemingly prompted by recent legal disclosures which allayed initial fears of a significant sell-off. Just days prior, there were rumblings that FTX, a prominent exchange, intended to liquidate $42 million worth of DOGE. However, on-chain data suggests a brighter outlook, hinting at potential price gains in the ensuing days. It is essential to remember this in the context of our view on Doge Price.
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- FTX and the Liquidation BuzzLast week, there was heightened tension around the coin, as reports circulated about FTX’s plans to liquidate DOGE tokens valued at $42 million. This move was ostensibly aimed at compensating creditors amid bankruptcy proceedings. Yet, official court documents released on Wednesday did not feature DOGE on FTX’s top 10 list for liquidation. Consequently, the DOGE price responded positively, ticking up from $0.060 to $0.062.
- Long-Term DOGE Investors Display ConfidenceWhile many crypto projects, such as Litecoin and Sandbox, saw dips to new cycle lows in recent months, Dogecoin managed to maintain its position above the crucial $0.060 mark. On-chain data emphasizes the significant role long-term DOGE investors play within the ecosystem. As per data from IntoTheBlock, between August 14 and September 15, long-term holders increased their DOGE holdings by 1.2 billion coins, while short-term investors sold approximately 1.56 billion coins.
- Shifting Momentum: A Bullish Outlook?An analysis of the current Relative Strength Index (RSI) indicates a positive momentum among DOGE investors. Recent charts show the daily RSI for Dogecoin trending upward, even reaching the 40.45 mark on September 15. In general, since September 11, the RSI has been on a remarkably healthy upward trend. The RSI measures the strength and momentum of the current price trend. With DOGE’s RSI rising into the low 40s, the market seems to be transitioning from an “oversold” to a “neutral” position.
- DOGE Price Forecast: The $0.07 ChallengeFrom an on-chain perspective, the price appears poised for further climbs. However, sell orders around the $0.07 mark might present a significant challenge. The Global In/Out of the Money Around Price (GIOM) data indicates that 377,570 addresses purchased 35 billion DOGE at an average price of $0.068. If these investors decide to cash in early, it might trigger a correction in Dogecoin’s price. If the resistance is breached, bulls might push the coin’s price to $0.08. Conversely, a drop below $0.055 could set off a more extended downward trend. In such a scenario, the 466,770 addresses that acquired 6.45 billion DOGE at the peak price of $0.060 could offer some initial support. If this support fails, Dogecoin’s price might tumble to $0.055.