Dogecoin (DOGE) Investors Reduce Distribution, Signaling a Potential Breakout from Its Narrow Trading Range

If this momentum continues, it could reclaim its multi-year high of $0.48, fueled by extended holding periods and increased accumulation by large holders.

Dogecoin (DOGE) price is signaling a potential breakout from its narrow trading range, with key on-chain metrics indicating strong accumulation and reduced selling pressure.

If this bullish momentum continues, Dogecoin could be poised to reclaim its multi-year high of $0.48.

Dogecoin Investors Opt to HODL, Reduce Selling Pressure

An on-chain assessment of Dogecoin’s performance reveals a significant spike in the holding time of all DOGE transacted in the past seven days.

According to IntoTheBlock, the average holding time of Dogecoin increased by 302% during the reviewed period.

This metric, also known as the realized age, measures the average duration tokens are kept in wallets before being sold or transferred.

Typically, longer realized ages indicate that investors are choosing to hold their coins rather than sell them, which reduces selling pressure in the market.

This is evident in Dogecoin’s price action, which has largely consolidated within a tight trading range despite the broader market rally.

However, the extended holding periods and increased accumulation by large holders suggest that buying pressure is building for DOGE.

Dogecoin Price Analysis: Gearing up for a Bullish Run

The holding time of an asset’s transacted coins represents the average duration tokens are kept in wallets before being sold or transferred.

This provides insights into the selling activity in the market, as younger coins are typically sold first.

When the realized age is低い, it indicates that a large proportion of the coins transacted were recently acquired and are being sold quickly, creating selling pressure in the market.

On the other hand, a higher realized age suggests that investors are holding their coins for longer periods, reducing selling activity.

In the case of Dogecoin, the realized age has surged, indicating that investors are accumulating DOGE and choosing to HODL their coins rather than sell them.

This bodes well for DOGE’s price, as it reduces selling pressure and creates a more bullish market structure.

DOGE Chart Shows Potential Breakout, Key Levels to Watch

Dogecoin (DOGE) price is consolidating within a narrow trading range, following a 3% gain in the past seven days.

However, on-chain data reveals that DOGE investors are reducing their distribution and increasing their holding periods, indicating potential buying pressure.

If this buying pressure continues, DOGE could extend its gains and attempt to reclaim its multi-year high of $0.48.

On the downside, a shift in accumulation and a return of selling activity could see DOGE price slip to $0.29.