Fear, uncertainty, and doubt (FUD) have intensified in the crypto community regarding Dogecoin as it nears the $0.17 value threshold. The fear is that as Dogecoin’s (DOGE-USD) price tip-toes to the $0.170 mark, a sell-off may occur. Why? Because at this level, approximately 10 billion Dogecoin become profitable, totaling nearly $1.6 billion.
Slim Margins, Strong DOGE Holders
Rocketing past $0.17 might be good news for meme aficionados and profit-seekers, but it’s a double-edged sword. Most of these coins were scooped up between $0.148 and $0.168, so we’re not talking about massive gains. This slim profit margin might not be enough to trigger a sell-off fiesta, suggesting some holders might hold out for loftier peaks.
While a lot of the FUD generated is citing data from the on-chain analytics platform IntoTheBlock, that same platform provides several other insights:
- The average length of time Dogecoin held is 2.2 years.
- Netflows over the past couple of weeks have been negative to neutral.
- Most importantly, an astounding 86% of Dogecoin holders have been in the money for a while.
The combination of long holding times, continuous accumulation in whale-holding wallets, and other fundamental factors doesn’t suggest that Dogecoin will face any near-term sell-offs.
Dogecoin Technicals Support a Bullish Outlook
From a technical analysis perspective, Dogecoin has maintained a strong holding pattern above a support zone previously identified in the $0.150 to $0.156 value area. Over the past four trading days, DOGE has consolidated into the $0.160 level, giving bulls and bears alike a reason to anticipate some fireworks soon.
While Dogecoin’s performance relative to its peers in the memecoin category is lagging, two critical oscillators on its daily chart, the Composite Index and Detrended Price Oscillator, currently show two powerful bullish signals.
First, the Composite Index has moved above its fast and slow-moving averages. Second, the Detrended Price Oscillator has moved and closed above the zero line. Combining those two events may give the bulls the necessary momentum to challenge Dogecoin’s next primary resistance level at $0.204.
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