Two other key indicators support the view that the coin’s price is about to breakout. What else?

This growth indicates rising demand, suggesting that DOGE could be starting a new leg up.

The 90-day MCA and float show that selling pressure has declined.

Dogecoin [DOGE] whales, specifically those holding between 100 million and 1 billion Dogecoin, have been hoarding since May 28. The total purchase value is over $100 million, according to data obtained by AMBCrypto from Santiment.

As a result, the supply held by this group rose from 20.69% to 21.40%. This is reflected in the address balance. The surge in buying activity could be positive for DOGE’s price.

DOGE is ready: for what?

This is because it indicates a growing demand for the currency and the price may also rise accordingly. At press time, the price of Dogecoin is $0.15, indicating that the price has been moving sideways for the past seven days.

However, the increase in whale accumulation could change the status quo for Dogecoin. If sustained, the cryptocurrency could break out and could potentially break through $0.20 like it did in March.

But Dogecoin needs other indicators to validate this bullish prediction. If the indicators agree, the price could move in the direction mentioned earlier.

However, if it fails to do so, DOGE could drop to $0.12. AMBCrypto analyzed the coin’s price potential by looking at the Mean Coin Age (MCA).

When the average coin age increases, it means that old coins are moving wallets. In most cases, this indicates distribution, while causing the price to drop.

Old coins return to base

As can be seen in the chart below, the 90-day MCA has been rising since the first week of April until May 29. Therefore, we can conclude that selling by long-term holders has caused DOGE to remain between $0.13 and $0.16 for the past month.

But the metric has been declining over the past three days. At press time, the reading is 49.08, suggesting that more holders prefer to keep their tokens in their own custody rather than on exchanges.

If this continues for a few weeks, Dogecoin could see a parabolic move that favors a bull market. In addition, on-chain data shows that the number of Dogecoins circulating in the market has declined.

As of this writing, the daily circulation is 357.04 million, indicating that fewer tokens are being traded. This decline could also be a good development for the price. This is because low circulation could mean low selling pressure.

While low selling pressure does not necessarily mean a breakout, other indicators are showing signs that a rebound could be imminent.

Additionally, according to IntoTheBlock, as of press time, Dogecoin holders have a profitability rate of 83%.

However, this percentage may increase once DOGE starts to slowly rise. If this happens, the percentage of holders may reach 90%.

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