Dogecoin's Rally Rolls On Despite Lack of FOMO, Signaling Potential for Upside

Despite Dogecoin's recent price surge, on-chain data reveals a lack of Fear Of Missing Out (FOMO) among traders. The "Total Amount of Holders" metric has remained flat, indicating that adoption has plateaued. This absence of FOMO suggests a potential continuation of the rally, but another signal, a drop in the "Mean Dollar Invested Age," may indicate the departure of experienced investors and a possible sign of a price peak approaching.

Dogecoin Rally Remains Undeterred by Absence of FOMO, Signaling Potential for Continuation

Introduction

Recent on-chain data analysis reveals a notable absence of fear of missing out (FOMO) among traders regarding Dogecoin (DOGE), despite the cryptocurrency's recent rally. This absence could be a positive indicator for the continuation of the bullish trend.

Flat Trajectory in Total Amount of Holders

According to data from the on-chain analytics firm Santiment, the "Total Amount of Holders" metric, which tracks the number of DOGE addresses with non-zero balances, has remained relatively flat in recent weeks. This suggests that the adoption of the meme coin has slowed down, despite the price volatility.

Significance of the Metric

An increase in the Total Amount of Holders can indicate several factors, including new adoption, consolidation of holdings among multiple addresses for privacy purposes, or the return of old investors. Conversely, a decline in the metric implies holders may be exiting the cryptocurrency.

Traders Not Swayed by Recent Rally

Despite the significant upward price movement of DOGE in the past few weeks, the Total Amount of Holders has increased by only 0.21%. This suggests that traders have not been actively participating in the rally, either due to lack of attention or skepticism.

Historical Context: FOMO as a Warning Sign

Historically, large inflows of traders during price surges have indicated widespread FOMO, which has often coincided with the formation of market tops. The absence of such FOMO for DOGE could be interpreted as a positive sign for the continuation of the rally.

Cautionary Signal: Declining Mean Dollar Invested Age

However, another on-chain signal, the Mean Dollar Invested Age, indicates that experienced investors have recently been selling their DOGE holdings. This signal has previously been associated with the approach of market tops for the cryptocurrency.

Current Price Situation

After briefly surpassing the $0.22 level, DOGE has experienced a slight pullback and is now trading below $0.21. The price has generally trended upwards in recent days.

Conclusion

The absence of FOMO among traders and the flat trajectory of the Total Amount of Holders suggest that the recent DOGE rally may have further room to run. However, the declining Mean Dollar Invested Age serves as a cautionary signal, indicating that experienced investors may be taking profits.

Disclaimer

This article is provided for educational purposes only and does not constitute financial advice. Investing in cryptocurrencies involves risk, and readers are advised to conduct their own research before making any investment decisions.