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Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- DOGE could target its December high in the coming weeks.
- Long-term holders of the memecoin saw gains.
Like most altcoins, dogecoin [DOGE] reunited in the new year. It rose from $0.06756 to $0.09266, posting gains of 37%. The rally ended after Bitcoin [BTC] The uptrend momentum slowed and fell, causing DOGE to fall to the $0.08000 zone.
At press time, DOGE has rallied to a critical level of post-Bitcoin selling pressure. [BTC] it recaptured the $22K zone. The selling pressure area could undermine strong bullish momentum. But DOGE could pull through if the next Fed announcement positively triggers the market.
Read dogecoin [DOGE] price prediction 2023-24
December High: Bull’s Next Target?
Source: DOGE/USDT on TradingView
On Balance Volume (OBV) has increased since the beginning of the year, driving buying pressure and DOGE pricing. At press time, the RSI was at 61 after pulling back from the overbought zone and making a U-turn, showing strong bullish momentum.
Therefore, the bulls could try to go beyond the selling pressure zone and retest the overhead resistance at $0.09266. However, a favorable announcement from the Fed could boost BTC, pushing DOGE to target its December high of $0.10689, offering a potential gain of 20%.
The previous bullish bias will be invalidated if the bears push DOGE below the demand zone (green) around $0.08000. Such a drop could find a peg at $0.07500.
Is your wallet green? review the DOGE Earnings Calculator
Long-term holders cashed in recent gains
Source: Feeling
According to Santiment, DOGE’s recent rally saw long-term holders enjoy brief gains around January 12. However, gains declined and losses were incurred before another round of rally offered good news.
At press time, DOGE registered 3.55% for long-term investors, as evidenced by the positively elevated 365-day MVRV (Market Value to Realized Value) ratio. Additional gains are likely if the rally breaks out of the $0.09000 selling pressure zone.
DOGE also saw an increase in Age Consumed coins, indicating that dormant DOGE was traded between addresses. The trend could also suggest that long-term holders dump their assets to cash in on recent gains.
Santiment’s supply distribution showed that key categories of whales divested of their assets (distributed/sold) to secure profits and could undermine DOGE’s effort to overcome the current selling pressure zone. Therefore, investors should be careful about the selling pressure zone.
Source: Feeling
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