Over the last week, Dogecoin (DOGE) – a popular meme coin – has experienced a significant price increase, surpassing its main meme coin competitors. Specifically, DOGE has climbed by approximately 23%, while Shiba Inu (SHIB) and Pepe (PEPE) have risen by 14% and 4%, respectively.
As Dogecoin’s short-term investors (those who buy and hold for a shorter period) are choosing to hold onto their coins longer, there is a possibility that the price of Dogecoin will continue to increase in the near future.
Dogecoin’s Short-Term Holders Fuel Rally
Based on data from IntoTheBlock, there’s been a 110% rise in the number of Dogecoin holders who have kept the asset for less than a month compared to the previous month.
Prolonging the duration that shareholders keep their assets implies a transition in investor mindset, moving away from brief, speculative trading towards a more strategic, long-term investment strategy. This change results in less pressure to sell the cryptocurrency, which can aid in price stabilization and help prevent significant drops.
Short-term investors significantly impact market behavior due to their swift responses to price changes and rapid trading actions that cause quick price swings. When these investors hold onto assets longer, they lessen the urge to sell, thereby contributing to price stability and possibly setting the stage for an increase in value over time.
Furthermore, the fact that DOGE’s funding rate currently stands at 0.0011% suggests a bullish perspective. This rate, which is charged periodically among traders in continuous futures contracts, helps ensure that the contract’s price stays close to the asset’s actual market price.
In simpler terms, when the funding rate is positive, investors who have taken a long position (buying) are effectively paying those with a short position (selling). This shows that there’s more optimism or “bullishness” among buyers, as they believe the asset’s price will rise. Additionally, it suggests a higher demand for leveraged long positions.
DOGE Price Prediction: Short-Term Holders Must HODL
Should Dogecoin’s holders continue with their current investment approach, there’s a possibility that the price may continue climbing, potentially reaching a level not seen in over four years – approximately $0.48.
On the other hand, changing the approach negatively could undermine this optimistic forecast. Should this group of Dogecoin investors decide to cash out, it might lead to a significant drop in Dogecoin’s value, potentially bringing it down to $0.299.
Read More
- ALEO PREDICTION. ALEO cryptocurrency
- MUFASA: THE LION KING Trailer Tells the Tale of Mufasa and Scar as Brothers
- ATH PREDICTION. ATH cryptocurrency
- Save or Doom Solace Keep? The Shocking Choice in Avowed!
- Marvel Confirms ‘Avengers: Secret Wars’ as the End of the Multiverse Saga — Here’s What Could Be Next
- Blake Lively Starrer It Ends With Us Features Songs by Taylor Swift and Post Malone and More
- Solo Leveling Season 2: Check Out The Release Date, Streaming Details, Expected Plot And More
- How To Fix The First Berserker Khazan Controller Issues on PC
- COMP PREDICTION. COMP cryptocurrency
- SOL PREDICTION. SOL cryptocurrency
2025-01-08 00:08