Dogecoin (Doge) has recently seen prices move sideways as market conditions continue to fluctuate. At the time of writing, Doge is priced at $0.223 and is struggling to get out of the integration phase.
Price action remains restrained, but key metrics suggest that key investors could help recover losses from July.
Dogecoin investors are changing bullish once again
A closer look at Hodler’s net position changes shows that long-term holders (LTH) are becoming more bullish. Red bars, which usually indicate sales pressure, are almost vanishing and indicate a shift towards accumulation rather than distribution.
The switch from sales to accumulation could set a stage for Dogecoin recovery in the coming weeks. The market is expected to have less depressurization due to fewer LTHs to settle their positions. This change, coupled with a continuous accumulation, reflects the beliefs 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.
Looking at the wider market, the supply of Dogecoin, which last operated between three and six months, has increased significantly. Over the past two weeks, medium-term holders have added Doge 4.9 billion to their holdings. This is worth more than $1.97 billion.
The fact that mid-term holders are accumulating Doge signals means that many are confident in future price movements. These investors may be waiting for a favorable market situation to take advantage of the potential price surge.
Doge Price can see recovery
DogeCoin, currently trading at $0.223, is required to maintain a support level of $0.222 to maintain recovery prospects. Recent trends show that Doge is aiming to bounce back this level of support and target $0.241 resistance. A successful breakout that outweighs this resistance will trigger when the rally reaches $0.273, helping to recover the losses seen in July.
If Dogecoin succeeds in establishing it as support after $0.241, it cements bullish momentum. In this scenario, the next important goal is $0.273, providing additional benefits to investors holding their assets. Positive sentiment from medium term holders could help drive this price movement.
However, if Dogecoin holds $0.222 and then does not fall below it, the price could be reconsidered at a level of $0.209 or $0.199. A further decline will override the current bullish outlook and extend the losses seen in recent weeks. As a result, it is important to maintain $0.222 in support for recovery opportunities.
Post 4.9 billion Doge maturation could drive Dogecoin prices to recover its July losses.
