Disclaimer: The information presented does not constitute financial, investment, trading or other types of advice and is the opinion of the author only
- DOGE may target the December high in the next few weeks.
- Long-term memecoin holders saw gains.
Like most altcoins, Dogecoin [DOGE] collected in the new year. It rose from $0.06756 to $0.09266, an increase of 37%. The rally ended after bitcoin [BTC] The bullish momentum slowed and declined, causing the DOGE index to drop to the $0.08000 area.
At press time, DOGE price has climbed to a critical level on post-bitcoin selling pressure [BTC] They recovered the region of $22,000. The selling pressure area could undermine the strong bullish momentum. But DOGE can penetrate the market if the upcoming Fed announcement triggers the market positively.
Read Dogecoin [DOGE] predict the price 2023-24
December High: Next Target for Bulls?
On-Balance Volume (OBV) has increased since the beginning of the year, adding to buying pressure and DOGE prices. At press time, the Relative Strength Index (RSI) is at 61 after pulling back from the overbought territory and making a full U-turn, showing strong bullish momentum.
Therefore, the bulls might try to clear the selling pressure area and retest the $0.09266 resistance. However, a positive Fed announcement could boost BTC, making DOGE target the December high of $0.10689, offering a potential gain of 20%.
The above bias will be invalidated if bears push DOGE below the (green) demand area around $0.08000. Such a decline could get a firm hold at $0.07500.
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The long-term holders reaped the recent gains
According to Santiment, DOGE’s recent rally saw short-term gains for long-term equity holders around January 12th. However, profits fell and losses hit before another round of recovery could even provide news.
At the time of publication, DOGE is up 3.55% for long-term investors, as evidenced by the positive rise in its 365-day MVRV (Market to Realized Value) ratio. Further gains might be likely if the recovery overcomes the $0.09000 selling pressure area.
DOGE also recorded a spike in spent lifetime coins, indicating that dormant DOGEs were exchanged between addresses. The trend may also indicate that holders of long-term assets are unloading their assets to take advantage of recent gains.
Santiment’s bid distribution showed that major options classes unloaded their assets (allocated/sold) to lock in gains and could undermine DOGE’s efforts to overcome the current selling pressure area. Therefore, investors should be careful of the selling pressure area.