Is Dogecoin About To Reverse? Key Factors To Watch
23 Novembro 2023 - 11:00AM
NEWSBTC
These Dogecoin on-chain indicators may be the ones to watch to see
if the meme coin has a chance of finding a reversal in the near
future or not. Dogecoin Large Holders Have Been Growing, Old Coins
Have Come Alive In a new post on X, the on-chain analytics firm
Santiment has talked about how two on-chain metrics related to
Dogecoin have been looking recently. The first indicator of
relevance here is the number of DOGE addresses carrying at least 1
million tokens in their balances. At the current exchange rate,
this converts to about $75,800, so this range would include the
large investors in the market. In particular, the sharks and whales
would fall inside this group. These key investors can hold some
influence in the market, so their movements can be worth following.
Related Reading: Chainlink Retests $14: Here’s What Will Happen If
Support Holds The below chart shows how the number of Dogecoin
sharks and whales has changed over the last few months: The value
of the metric seems to have been climbing in recent days | Source:
Santiment on X From the graph, it’s visible that the Dogecoin
addresses carrying at least 1 million DOGE have registered some
notable growth over the past month. During this period, shark and
whale numbers on the network have increased by 121. This would
imply there has been interest in the memecoin from the large
investors recently. Interestingly, the surge in the number of these
addresses has only become sharper since DOGE topped out recently,
implying that the sharks and whales have been taking advantage of
the lower prices and buying more. This is certainly a positive sign
for a reversal in the asset’s price, as the humongous hands appear
to be backing the cryptocurrency at the current levels. There has
also been a signal that may not necessarily be so positive,
however. In the chart, Santiment has also attached the data for
another metric, called the “age consumed,” which basically tells us
about the movement occurring from the dormant tokens on the
blockchain. The dormant coins belong to the “long-term holders”
(LTHs), who are the most resolute hands in the sector. When the age
consumed metric spikes, it means that these LTHs have decided to
finally break their silence. It’s hard to say about the
implications of such a trend on the meme coin’s price, but a
possibility that’s always on the table is that the LTHs have in
fact made their moves to sell the cryptocurrency. Related Reading:
Has Bitcoin Reached “Euphoria” Yet? What On-Chain Data Says As is
apparent from the graph, the Dogecoin age consumed has registered a
huge spike recently, implying that HODLers have been on the move.
This can be a sign of selling, but Santiment has pointed out that
more often than not, such spikes in the indicator signal a change
in direction for the asset’s price. Between these two signals, one
bullish and the other perhaps a bit more mixed, it now remains to
be seen how the price of DOGE develops in the coming days. DOGE
Price Since hitting a top above $0.087 a few days back, Dogecoin
has slipped down all the way towards $0.076. Looks like DOGE has
observed some drawdown recently | Source: DOGEUSD on TradingView
Featured image from Kanchanara on Unsplash.com, charts from
TradingView.com, Santiment.net
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