The leading Meme Coin Dogecoin (Doge) surged 21% last week, riding on broader market sentiment improvements and improved trust from new investors.
On-chain data reveals a consistent pattern of hadling among long-term investors. This behavior shows confidence and suggests a possible sustained upward trend.
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Dogecoin holder locks in
One important metric that highlights this new optimism is the vibrancy of the coin. This measures the degree to which a long-term holder (LTH) is spending a coin.
According to GlassNode, Doge’s vibrancy has steadily plummeted over the past month. This move refers to a sharp slowdown in selling among these investors. At the time of writing, the metric is 0.705, suggesting that many long-standing doges are dormant.
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This supports a conviction-driven retention narrative, and helps Doge record more profits in the short term.
Additionally, Doge’s Hodler Net Position Change has recorded a steady rise since September 7th. So we are making sure more coins are being moved to long term storage.
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According to GlassNode, the metric tracks the net position of long-term holders over a specific period of time and measures whether investors are increasing or decreasing exposure. Positive readings indicate that more coins have been transferred to Hodler’s wallet.
For Doge, this is a bullish trend. This is because it reduces the available supply in distribution and reflects a vote of trust from committed investors.
Can the holder push over $0.29 before the pullback?
This wave of accumulation strengthens the case of continuous momentum. If the trend persisted, it could push resistance towards $0.33 in the past at $0.29, reaching its last in January.
However, Doge’s daily chart measurements of Money Flow Index (MFI) show momentum indicators that hover around excess zones. This indicates a potential pullback. At the time of writing, the metric that combines price and transaction volume to measure buying and selling pressure is 80.29.
Typically, the MFI ranges from 0 to 100, with values ​​above 80 being considered over-purchased, with measurements below the excess condition of 20 signaling.
As Doge has now, it is suggested that when indicators are pushed into the purchased zone, purchase pressure could peak and short-term corrections or price consolidation could continue.
If this happens, Doge will have a plunge in risk of falling below $0.2583.
