Disclaimer: The information presented does not constitute financial, investment, trading or any other advice and is solely the opinion of the author
DOGE could be aiming for the December high in the coming weeks.
Long-term holders of the memecoin saw profits.
Like most altcoins, Dogecoin [DOGE] collected in the new year. It rose from $0.06756 to $0.09266, with a gain of 37%. The rally ended after Bitcoin [BTC] uptrend momentum slowed and fell, prompting DOGE to fall to the $0.08000 zone.
At the time of writing, DOGE reached a critical selling pressure level after Bitcoin [BTC] has reclaimed the $22K zone. The selling pressure zone could undermine strong upside momentum. But DOGE could continue if the upcoming Fed announcement positively triggers the market.
Read Dogecoin [DOGE] Price prediction 2023-24
December highlight: Bull’s next target?
On Balance Volume (OBV) has been rising since the start of the year, driving up buying pressure and DOGE prices. At the time of writing, the Relative Strength Index (RSI) was at 61 after pulling out of the overbought zone and making a U-turn, showing strong bullish momentum.
Therefore, bulls might try to move outside the selling pressure zone and retest overhead resistance at $0.09266. However, a favorable announcement from the Fed could bolster BTC, leading DOGE to target the December high of $0.10689, yielding a potential gain of 20%.
The above bullish bias will be invalidated as bears push DOGE below the demand zone (green) around $0.08000. Such a downswing could find a steady foothold at $0.07500.
Is your wallet green? look at the DOGE profit calculator
Long-term holders cashed in on recent gains
According to Santiment, DOGE’s recent rally around Jan. 12 saw short gains for long-term holders. However, profits fell and losses were incurred before another round of recovery offered good news.
At the time of writing, DOGE placed 3.55% for long-term investors, as evidenced by its positively elevated 365-day MVRV (market value to realized value) ratio. Additional gains are likely if the recovery overcomes the $0.09000 selling pressure zone.
DOGE also recorded a spike in Age Consumed coins, indicating that inactive DOGEs were being exchanged between addresses. The trend could also indicate that long-term holders are paying off their assets to cash in on recent gains.
Santiment’s supply distribution showed that the major whale categories were losing their assets (divided/sold) to capture profits and could undermine DOGE’s efforts to overcome the current sales pressure zone. Therefore, investors should be careful about the selling pressure area.
This post Going long on Dogecoin [DOGE]? Here’s what you need to know
was published first on https://ambcrypto.com/going-long-on-dogecoin-doge-heres-what-you-need-to-know-2/