Will Dogecoin Price Hit New Highs as Short-Term Holders Surge
Leading meme coin Dogecoin (DOGE) has surged significantly in price over the past week, outperforming its top meme coin rivals. During this period, DOGE surged 23%, surpassing Shiba Inu (SHIB) is up 14% and PEPE is up 4%.
As short-term holders of DOGE (STH) extend their holding periods, the price of the meme coin is likely to continue its upward trend in the short term.
Short-term holders of Dogecoin fuel rally
According to IntoTheBlock, DOGE’s STH (Those who have held the asset for less than a month) have increased their holding time by 110% in the past month.
When the holding period for an asset increases, it signals a shift in investor sentiment from short-term speculation to a longer-term approach to investing. This reduces overall selling pressure on the cryptocurrency, helping to stabilize prices and prevent significant declines.
Short-term holders (STH) play a crucial role in price dynamics as they react quickly to market movements and drive immediate volatility through trading activity. When something has an extended holding period, they reduce selling pressure, help stabilize asset prices, and potentially set the stage for upward momentum.
Additionally, DOGE’s positive funding rate at press time was 0.0011%, supporting this bullish outlook. This is a recurring fee paid between traders in perpetuity futures contracts to keep the contract price consistent with the spot price of the underlying asset.
Positive funding rates mean long positions (buyers) are paying short positions (sellers), indicating bullish sentiment and higher demand for leveraged longs.
DOGE Price Prediction: Short-Term Holders Must HODL
If DOGE’s STH maintains its hold strategy, its price could extend its upward trend and hit a four-year high of $0.48.
However, a negative shift in strategy would invalidate this bullish forecast. If this group of people DOGE holders start Sell for profit, which may result in meme coin price It plummeted to $0.299.
Disclaimer
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