Dogecoin Price Analysis: Bullish Momentum Builds Amid Increased HODLing

Dogecoin’s (DOGE) price recently hit a yearly high of $0.43, but it has since retraced to $0.37. Despite this dip, on-chain data reveals that investors remain bullish, refraining from selling and holding onto their tokens. This HODLing behavior may signal a potential upward breakout for Dogecoin in the near term.

Dogecoin Investors Show Strong Conviction

In the past seven days, Dogecoin’s Coin Holding Time—an indicator measuring the duration coins remain untouched—has surged by over 100%, according to IntoTheBlock. This suggests that holders are resisting the urge to take profits, a bullish sign that reflects confidence in DOGE’s long-term potential.

Moreover, data from Santiment highlights a significant drop in Dogecoin’s circulation, falling from 5.88 billion to 969.06 million. Reduced circulation typically indicates lower selling pressure and increased buying interest, further bolstering the case for a price rebound.

Bullish Technical Setup: DOGE Poised for Breakout

On the technical front, Dogecoin has formed a bull flag on its 4-hour chart. This continuation pattern suggests that DOGE’s price could resume its upward trend after a brief consolidation.

• Bull Flag Impact: Historically, DOGE rallied over 100% the last time this pattern formed.
• Short-Term Prediction: If DOGE breaks out, its price could soar past $0.50.

Potential Risks

While the outlook remains optimistic, any shift in sentiment leading to increased selling could push DOGE’s price below $0.30. Monitoring on-chain activity and market trends will be critical in the coming days.