The impact of the recent sharp collapse over the weekend is still being felt across the market today Dogecoin It seems he has entered a downward spiral. Although DOGE’s trajectory has turned lower, short-term holders are currently benefiting from the pullback, as they go on a massive buying spree.
A massive Dogecoin buying spree continues
In light of the decline in Dogecoin price action, short-term investors are once again making their presence felt in the market. Although Doji price While they are exposed to a decline, on-chain data reveals that these investors appear unfazed by the decline; Instead, they view it as an ideal opportunity to increase their holdings.
like I mentioned Written by Joao Widson, market expert and founder of Alphractal, Dogecoin is still in the early stages of development, and in the short term Owners Accumulate. This steady accumulation reflects growing confidence in the long-term resilience of the memecoin. Such continued conviction could set the stage for a bullish rebound after broader market sentiment stabilizes.
According to the Hodl Waves chart, short holders are accumulating more DOGE each day, showing an increase in supply of up to 6 months. Historically, this crucial pattern has led to Dogecoin prices rising, Bitcoinand other coins. The main reason for the rise in prices is due to the fact that new speculative capital entering the market raises the realized value.
Meanwhile, the MVRV Z-Score has yet to display the same level of extreme euphoria as previous cycles or 2021. Therefore, it shows that the leading meme coin still has room to More price growth Before the cycle ends or reaches its climax.
The DOGE summit for this cycle is not there?
Wedson also shared insights into whether DOGE has reached its highs for this current cycle. In December 2024, Widson highlighted that DOGE reached an all-time high for the current cycle right at Cumulative Value Destructive Days (CVDD) Alpha, a key metric for identifying cycle bottoms and tops.
However, data from the Reserve Risk Index suggests that the DOGE top in 2024 was fragile and lacked strong on-chain interest. Wedson takes into account the reading from this key metric because it has accurately predicted every Dogecoin peak in the past nine years.
As DOGE continues to face downward pressure, Wedson claims that monitoring shareholder actions daily is important to navigate the market’s direction. His statement is fueled by the fact that steady accumulation would suggest this Possibility of price increases in the near future.
Related Reading: House Of Doge Reveals Why Institutions Are Now Watching Dogecoin Closely
Bitcoinsensus has done just that expected DOGE may soon rise beyond the $1 price mark as the overall picture remains bullish. Despite the recent market volatility, DOGE maintains its strength on higher time frames. Currently, the price is positioned above the support line of the ascending channel. If the meme coin rises to the upper line of the channel along with the overall steady upward trend, it will likely surpass it. $1 level It is heading towards $1.40.
Featured image from Pixabay, chart from Tradingview.com
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