In recent days, the price of DOGE has seen a slight increase, alongside Bitcoin’s movement towards the $43,000 mark. With an uptick in buying interest around the current dip, sentiment is primed for a possible breakout of the meme coin. This dynamic is supported by various on-chain indicators, including the notable increase in profitable Dogecoin addresses, which reached their highest level in two years.
Return to long-term confidence of DOGE holders
Over the past month, Dogecoin has seen a notable increase in value of over 22%, boosting the confidence of meme investors. As the price of Dogecoin increased, so did the selling pressure from its holders.
The IntoTheBlock chart shows a significant change in Dogecoin miner reserves. As of November 24, these reserves amounted to 4.67 billion Dogecoin. However, on December 15, it fell to 4.39 billion Dogecoin.
This indicates that in a span of three weeks, Dogecoin miners plunged their reserves by around 280 million, which is equivalent to around $27 million. Miners appear to be taking advantage of rising prices to liquidate their holdings at maximum values. Such a constant selling trend from miners can usually have a negative influence on the price near resistance levels.
However, the number of profitable DOGE wallets has been growing steadily. According to the data, around 3.6 million, or 70% of the total addresses, are profitable, the highest figure in around 2.4 years. This suggests growing interest in Dogecoin. The analysis suggests that this surge could fuel further increases for Dogecoin in the coming weeks as growing hodling sentiment creates buying demand.
However, if miners begin a new sell-off at around $0.1, Dogecoin price could fall and trigger a decline, delaying hopes for further increases.
What’s next for DOGE price?
Dogecoin recently rebounded from the low of $0.91 as buyers showed their confidence heading into the decline. However, buyers are struggling to push the price above the $0.10 mark. Currently, Dogecoin price is trading at $0.095, up more than 0.9% from yesterday’s rate.
For now, sellers are trying to push the price below the 20-day EMA. Success in this area could intensify selling pressure, potentially causing DOGE price to fall towards the channel support line at $0.9. While this level may offer some support, a breakout could see the price decline further to $0.07.
The current upward trend of both moving averages, coupled with the fact that the Relative Strength Index (RSI) is in a favorable zone, suggests that buyers have the upper hand. A break above the channel resistance will send the price towards $0.11. Additionally, a rise above $0.12 to $0.14 could send the price consolidating in a bullish region at $0.2.