The impact of the recent sharp crash that occurred over the weekend is still being felt across the market today, and Dogecoin seems to have entered a bearish state. Although DOGE’s trajectory has flipped bearish, short-term holders are currently capitalizing on the pullback, as they go on a massive buying spree.
A Massive Dogecoin Buying Spree Ongoing
In light of waning action in the price of Dogecoin, short-term investors are showcasing their presence once again in the market. Despite DOGE’s price experiencing a pullback, on-chain data reveals that these investors appear unfazed by the drop; instead, they view it as an ideal opportunity to increase their holdings.
As reported by Joao Wedson, a market expert and founder of Alphractal, Dogecoin is still in its early stages of development, and short-term holders are accumulating. This steady accumulation reflects growing confidence in the meme coin’s long-term resilience. Such persistent conviction could pave the way for a bullish recovery after the broader market sentiment stabilizes.
According to the Hodl Waves chart, short-term holders are amassing more DOGE every day, which shows a supply increase of up to 6 months. Historically, this crucial pattern has driven prices higher for Dogecoin, Bitcoin, and other coins. The major reason for prices moving higher is due to the fact that new speculative capital entering the market raises the Realized Cap.
In the meantime, the MVRV Z-Score has not yet displayed the same level of intense ecstasy as previous cycles or 2021. Therefore, it shows that the leading meme coin still has room for more price growth before the cycle comes to an end or reaches its top.
DOGE’s Top For This Cycle Not In?
Wedson has also shared insights on whether DOGE has reached its top for this current cycle. In December 2024, Wedson highlighted that DOGE reached its all-time high for the current cycle exactly at the Cumulative Value Days Destroyed (CVDD) Alpha, a key metric for determining cycle bottoms and tops.
However, data from the Reserve Risk Indicator implies that DOGE’s top in 2024 was fragile and lacked robust on-chain interest. Wedson considers the reading from this key metric as it has accurately predicted every Dogecoin’s top in the past 9 years.
While DOGE keeps facing bearish pressure, Wedson claims that monitoring holders’ actions daily is important to navigate the market direction. His statement is fueled by the fact that steady accumulation may suggest a potential rise in price in the near future.
Related Reading: House Of Doge Reveals Why Institutions Are Now Closely Watching Dogecoin
Bitcoinsensus has forecasted that DOGE could soon rise beyond the $1 price mark as the macro picture remains bullish. Despite the recent market volatility, DOGE is holding strong on high time frames. Presently, the price is positioned above the support line of a rising channel. Should the meme coin surge to the upper line of the channel alongside a steady bullish overall trend, it is likely to surpass the $1 level and head towards $1.40.
Featured image from Pixabay, chart from Tradingview.com
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