Story Highlights
- DOGE price tumbles, sparking worry as lesser-known meme coins rise.
- Long-term DOGE holders show surprising strength, refusing to sell at a discount.
- Technical indicators hint at a possible price bottom, offering hope for a DOGE rebound.
Dogecoin (DOGE), the undisputed king of meme coins, has been dethroned…well, almost. A recent price plunge has sent shivers down the spines of DOGE fans, with its value dipping to a 40-day low on June 11th. This slump comes as a surprise, especially considering the recent surge in popularity of the broader memecoin market. But unlike DOGE, lesser-known players like PEPE and FLOKI are basking in the limelight.
A Sign of Hope for DOGE?
But fear not, DOGE devotees! There’s a silver lining in this price plunge. On-chain data reveals a fascinating trend: a dramatic decrease in selling pressure from long-term holders. The “Age Consumed” metric, a measure of selling intensity based on coin dormancy, showcases a staggering 98% drop in selling activity this week compared to its peak. This suggests a strong resolve among long-term investors, who are refusing to sell their DOGE at a discount. This could be the spark that ignites a price rebound shortly.
Technicals Whisper of a Potential Rebound
Adding fuel to the potential recovery fire are technical indicator. The Bollinger Band, a tool used to identify potential price extremes, hints at a possible bottom. DOGE has dipped below its $0.000014 support level, which some analysts view as a sign that the price might be nearing its floor. This could entice strategic investors waiting on the sidelines to jump in, potentially triggering a reversal.
DOGE’s Fate: A Coin Toss
The coming days will be crucial for DOGE. While the combined signals from on-chain data and technical indicators suggest a potential fightback, the key lies in the continued low selling pressure from long-term holders. If this trend persists, DOGE might find support around its current price and launch a comeback. However, the road to recovery remains uncertain. Only time will tell if the bark of the Doge returns or if this slump signifies a longer-term slumber.
Disclaimer:
The information contained in this article is for informational purposes only and should not be considered financial advice. Please consult with a financial professional before making any investment decisions.
