- Long-term Dogecoin holders have faced a decline of nearly 20.8% over the past year, but recent data indicates potential for future gains.
- Increased long positions, rising sentiment, and bullish technical indicators suggest that a reward for these investors might be on the horizon.
Dogecoin (DOGE) has been capturing attention not only for its memecoin status but also for its evolving investment landscape. Recent data reveals an intriguing scenario for long-term Dogecoin holders. While short-term traders have seen only modest gains of approximately +1.7% over the past 30 days, long-term investors who have held their positions for a year are experiencing a decline of nearly 20.8%. Despite this downturn, the trend for long-term holders is showing signs of potential reward in the near future.
The Plight of Long-Term Holders
According to Santiment, the state of Dogecoin’s long-term holders has been less than ideal. Although DOGE enjoyed a brief surge last month due to the memecoin frenzy surrounding Tron’s SunPump launch, the market has since taken a downturn. As of the latest data, DOGE’s price has dropped by over 3% in the past 24 hours, trading at $0.09956 with a market capitalization exceeding $14.5 billion.
However, a closer inspection of on-chain data from sources like AMBCrypto and IntoTheBlock shows an increase in the number of addresses holding DOGE for more than a year. This uptick suggests that long-term holders remain optimistic about the memecoin’s future despite recent setbacks.
Signs of a Potential Upswing
Despite the current bearish signals, there are indications that long-term investors might soon see some rewards. Analysis of Santiment’s data shows an increase in DOGE’s trading volume coupled with a drop in price, which typically signals a bearish market. However, this drop has been accompanied by a rise in DOGE’s weighted sentiment, reflecting growing bullish sentiment among investors.
The MVRV (Market Value to Realized Value) ratio also shows an increase, suggesting a potential rise in DOGE’s price. Moreover, Glassnode’s data reveals an uptick in the long/short ratio, indicating more long positions in the market than short ones, which is often a bullish sign.
Technical Indicators: A Mixed Bag
A review of DOGE’s daily chart highlights a critical support zone being tested. The Chaikin Money Flow (CMF) and Money Flow Index (MFI) suggest that DOGE may have struggled to maintain this support, moving sideways instead. However, the MACD (Moving Average Convergence Divergence) indicator provides a glimmer of hope with a bullish crossover, which could signal a potential price increase.
While long-term Dogecoin holders have faced challenges recently, the combination of increasing long positions, bullish sentiment, and positive technical indicators suggests that a potential reward might be on the horizon. Investors should remain vigilant and monitor these trends as they could indicate a favorable shift in the memecoin’s market dynamics.
