Two other key metrics support the notion that the coin’s price is ready to break out. What else?
- The increase indicated rising demand, suggesting that DOGE could begin another rally. The 90-day MCA and circulation revealed that selling pressure had decreased.
Dogecoin [DOGE] whales, specifically those who hold 100 million to 1 billion coins have been accumulating since the 28th of May. According to data AMBCrypto obtained from Santiment, the total purchase was worth over $100 million.
As a result, the supply held by this cohort rose from 20.69% to 21.40%. This was reflected in the balance of addresses. The surge in buying activity could be good for DOGE’s price.
DOGE is ready: For what?
This is because it signals a growing demand for the coin, and a price increase could follow suit. At press time, Dogecoin’s price was $0.15, indicating that the price has swung sideways in the last seven days.
However, the rise in whale accumulation could change things for DOGE. If sustained, the cryptocurrency could break out, and a rise above $0.20 as it did in March could be next.
Source: Santiment
But Dogecoin would need other metrics to validate this bullish prediction. Should the metrics align, the price could head in the direction mentioned earlier.
However, failure to do that could send DOGE plunging as low as $0.12. AMBCrypto analyzed the coin’s price potential by looking at the Mean Coin Age (MCA).
When the Mean Coin Age increases it means that old coins are moving wallets. In most cases, this indicates distribution while leading to lower prices.
Old coins are back to base
From the chart below, the 90-day MCA has been increasing since the first week in April up until the 29th of May. As such, one can conclude that these sell-offs by long-term holders caused DOGE to remain stuck between $0.13 and $0.16 this past month.
But for the past three days, the metric has been falling. At press time, the reading was 49.08, suggesting that more holders are preferring to keep the coin in self-custody rather than on exchanges.
If this continues for the next few weeks, DOGE could produce a parabolic move that could favor bulls. Furthermore, on-chain data showed that the number of Dogecoin circulating in the market had dropped.
Source: Santiment
As of this writing, the one-day circulation was 357.04 million, indicating fewer number of coins engaged in transactions. For the price, this decrease could also be a good development. This is because low circulation could suggest low selling pressure.
While low selling pressure does not automatically translate to a breakout, the signals indicated by the other metrics suggest that a rally could be close.
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In addition, Dogecoin holders in profit were 83% at press time, according to IntoTheBlock.
However, this percentage could increase once DOGE begins its slow move up the charts. If or when this happens, the ratio of holders in the money might hit 90%.
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