In recent developments, the price of Dogecoin (DOGE) has displayed resilience, inching up to $0.06118 after initial concerns about FTX’s bankruptcy proceedings dissipated. The crypto community now eagerly anticipates further potential price surges, with on-chain data analysis shedding light on the crucial role played by confident long-term investors.
Last week, Dogecoin faced turbulence in the crypto market as reports emerged about FTX Exchange’s plans to liquidate its $42 million DOGE holdings as part of ongoing bankruptcy proceedings. However, the official court filings, published on Wednesday, surprisingly excluded DOGE from FTX’s top 10 crypto assets list, providing much-needed relief to the DOGE community. Subsequently, DOGE has seen a modest uptick from $0.060 to $0.062.
On-chain data revealed a compelling narrative, with long-term DOGE holders increasing their holdings by 1.2 billion DOGE between August 14 and September 15, while short-term investors offloaded 1.56 billion coins. This trend signifies a bullish signal, particularly during turbulent market conditions, potentially influencing new participants and shaping investor decisions based on Dogecoin’s future price expectations.
Following the revelation that DOGE is not part of FTX’s sell-off plans, Dogecoin bulls have gained significant momentum. The Relative Strength Index (RSI) further supports these claims, indicating an upward trend since September 11, with the RSI reaching 40.45 on September 15. This RSI data signifies a shift from oversold conditions to a more balanced or neutral momentum, hinting at the potential for higher gains if long-term investors continue to HODL.
As Dogecoin’s price prepares for potential gains when broader crypto markets turn bullish, a significant sell wall at the $0.07 range looms, presenting a formidable challenge for investors. The Global Inflow/Outflow of Money Around Price (GIOM) highlights that 377,570 addresses purchased an average of 35 billion DOGE at $0.068, potentially causing a price correction if current holders choose to sell. However, should this resistance level be breached, DOGE could rally toward $0.08.
Conversely, if DOGE experiences a drop below $0.055, bears could initiate a prolonged downtrend. In such a scenario, support could be found at 466,770 addresses, which acquired 6.45 billion DOGE at a maximum price of $0.060. While this outcome is less likely, it underscores the importance of monitoring DOGE’s price movements in the coming weeks, as it remains a captivating asset in the ever-evolving crypto landscape.
