Dogecoin (DOGE), the popular meme coin, is showing signs of breaking out from its current trading range. If this trend continues, DOGE could reclaim its multi-year high of $0.48, driven by extended holding periods and increased accumulation by large investors.
Dogecoin Investors Show Strong Conviction
Recent on-chain data reveals a significant rise in the holding time of DOGE transactions over the past week. According to IntoTheBlock, the average duration that tokens are held before being sold or transferred has surged by 302%.
Longer holding periods indicate reduced selling pressure, reflecting stronger investor confidence. Instead of selling, more investors are choosing to hold their coins, suggesting optimism about future price movements.
Whales Increase Accumulation
In addition to fewer sell-offs, large holders of DOGE, often referred to as whales, have been increasing their positions. Over the past week, the net inflow of DOGE into whale-controlled wallets has risen by 112%.
This metric tracks the movement of coins in and out of wallets held by institutional investors and large holders. A spike in accumulation typically signals growing confidence in the asset’s potential for price appreciation.
DOGE Price Prediction: Can the Bullish Momentum Continue?
If the current buying pressure persists, DOGE could extend its recent 3% weekly gain. With growing investor interest, the meme coin might soon retest its four-year high of $0.48.
However, if accumulation slows down and selling pressure increases, DOGE could face a decline, potentially dropping to $0.29.
Conclusion
Dogecoin’s recent on-chain activity suggests a bullish outlook, with investors showing confidence through increased holding periods and whale accumulation. As market sentiment remains positive, all eyes are on DOGE’s next move toward reclaiming previous highs.
