The price of Dogecoin (DOGE) is currently trading in a bullish descending wedge pattern. However, concerns are arising as the supply of DOGE is shifting from mid- and long-term holders to short-term holders, potentially impacting price stability and volatility. In order for DOGE to experience a significant rally, it must surpass the resistance level at $0.128. The cryptocurrency market is closely monitoring DOGE’s dynamics, as its price movement could have implications for the broader altcoin market.
The daily chart of Dogecoin reveals a risk of further decline, as the distribution of its supply among different types of holders is undergoing a noticeable shift. The altcoin is moving from mid- and long-term holders to short-term holders, raising concerns about price stability.
Over the past month, the supply of DOGE held by short-term holders has significantly increased from 10.5 billion DOGE to 13.4 billion DOGE. This growth highlights the growing trend of short-term trading, which can introduce higher volatility to the market. Short-term holders typically hold assets for less than a month, making the conditions for Dogecoin increasingly bearish as they are more likely to sell rapidly in response to market fluctuations.
Furthermore, DOGE investors have been exhibiting hesitancy and concern, as the weighted sentiment has remained negative for nearly three months. This reflects a prevailing atmosphere of caution and pessimism among market participants. The prolonged negative sentiment reduces the chances of a price recovery for DOGE.
In order for the bullish pattern to be confirmed and a significant rally to occur, DOGE must overcome the resistance level at $0.128, which has proven to be a persistent challenge for the meme coin. While the descending wedge pattern suggests the possibility of a massive rally targeting $0.300, it is dependent on a successful breakout.