Dogecoin (DOGE) recently showed sideways movement in its price, while market conditions continue to fluctuate. At the time of this report, DOGE is priced at $0.223, struggling to emerge from a consolidation phase.
Although the price action remains contained, key indicators suggest that crucial investors may help the token recover its losses from July.
Dogecoin investors are becoming optimistic again
A more detailed analysis of the change in the net position of HODLers shows that long-term holders (LTHs) are becoming more optimistic. The red bars, which typically indicate selling pressure, have nearly disappeared, signaling a shift to accumulation instead of distribution.
The shift from selling to accumulation may set the stage for the recovery of Dogecoin in the coming weeks. With fewer LTHs liquidating their positions, the market is expected to experience less downward pressure. This change, along with ongoing accumulation, reflects the confidence that key investors still have in Dogecoin's future prospects.
Change in the Net Position of Dogecoin HODLers. Source: Glassnode
Looking at the broader market, the supply of Dogecoin that was last active between three and six months saw a significant increase. In the past two weeks, medium-term investors have added 4.9 billion DOGE to their wallets, which is worth over $1.97 billion.
The fact that medium-term investors are accumulating DOGE signals that many are confident about its future price movements. These investors are likely waiting for favorable market conditions to capitalize on any potential price increase.
Dogecoin Supply Active Last Seen. Source: Glassnode
The price of DOGE may seek recovery
Currently priced at $0.223, Dogecoin must maintain the support level of $0.222 to sustain its recovery prospects. Recent trends indicate that DOGE is seeking to recover from this support level and aim for the resistance of $0.241. A successful breakout above this resistance could trigger a rally towards $0.273, helping Dogecoin recover the losses seen in July.
If Dogecoin can surpass $0.241 and establish it as support, it would solidify the upward momentum. In this scenario, the next key target would be $0.273, providing additional gains for investors who held the asset. The positive sentiment of medium-term investors may help drive this price movement.
DOGE Price Analysis. Source: TradingView
However, if Dogecoin fails to maintain $0.222 and falls below this level, the price may revisit the $0.209 level or even $0.199. A further decline would invalidate the current bullish outlook, widening the losses seen in recent weeks. Therefore, maintaining the support level of $0.222 is crucial for any chance of recovery.
The article 'Dogecoin may react with 4.9 billion DOGE in maturation' was first seen on BeInCrypto Brazil.
