Dogecoin (DOGE) has recently seen sideways movement in its price, as market conditions continue to fluctuate. At the time of this report, the price of DOGE is $0.223, struggling to break out of the consolidation phase.
While price movement remains calm, key indicators suggest that major investors may help the token recover its losses from July.
Dogecoin investors are turning optimistic again
A close look at the change in net HODLer position shows that long-term holders (LTHs) are becoming more optimistic. The red bars, which usually indicate selling pressure, have almost disappeared, signaling a shift towards accumulation rather than distribution.
The shift from selling to accumulation could pave the way for a Dogecoin recovery in the coming weeks. With fewer LTHs liquidating their positions, the market is expected to experience less downward pressure. This shift, along with ongoing accumulation, reflects the confidence that major holders still have in Dogecoin's future prospects.
Looking at the broader market, Dogecoin's supply that was last active between three and six months has seen a significant increase. Over the past two weeks, medium-term holders have added 4.9 billion DOGE to their holdings, valued at over $1.97 billion.
The fact that medium-term holders are accumulating DOGE indicates that many of them are confident in future price movements. These investors are likely waiting for favorable market conditions to capitalize on any potential price increase.
DOGE price may look to recover
Currently trading at $0.223, Dogecoin must hold the support level of $0.222 to maintain recovery prospects. Recent trends suggest that DOGE aims to bounce off this level and target resistance at $0.241. A successful breakout above this resistance could trigger a rise towards $0.273, helping Dogecoin recover losses seen in July.
If Dogecoin can surpass $0.241 and establish it as support, it will bolster upward momentum. In this scenario, the next major target would be $0.273, providing additional gains for investors holding the asset. Positive sentiment from medium-term holders can help drive this price movement.
However, if Dogecoin fails to maintain $0.222 and drops below it, the price may revisit the $0.209 level or even $0.199. Further declines would invalidate the current bullish outlook, extending the losses seen in recent weeks. Therefore, maintaining support at $0.222 is crucial for any chance of recovery.