Dogecoin retail traders increase DOGE holdings, meme coin could witness price recovery
- Dogecoin holding retail wallet addresses scooped up DOGE while whales distributed their holdings in December.
- DOGE price suffered nearly 14% decline in the past week, as the meme coin nosedived below key support at $0.09.
- DOGE is currently above the crucial support zone between $0.0730 and $0.0850, likely to make a comeback above $0.1000.
Dogecoin noted a change in asset holdings in December. While large wallet addresses holding DOGE shed their holdings, during the dip, retail traders scooped up DOGE tokens. DOGE price is currently above a crucial support zone and the meme coin is likely poised to target the $0.1000 level again.
DOGE on-chain metrics are bullish and support the thesis of recovery in the asset.
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Dogecoin on-chain metrics support recovery
Three on-chain metrics support a recovery in the meme coin’s price - Active Addresses, DOGE distribution and Transaction Volume. Based on Santiment data, there is a bullish divergence in Dogecoin’s active addresses and transaction volume. While DOGE price dropped between December 10 and 18, Active Addresses climbed, a similar trend is observed in Transaction Volume.
The rise in both the metrics cannot directly be attributed to profit-taking, however DOGE price declined by 12% between December 10 and 18. The bullish divergence could be a sign of increased demand for the asset, from market participants.
In the same timeframe, large wallet addresses holding DOGE were shedding their holdings and distributing them amongst smaller retail holders, this is likely another factor that contributed to the rise in active addresses and transaction volume.
 [16.29.28, 18 Dec, 2023]-638384954844788692.png)
DOGE Active Addresses and price. Source: Santiment
 [16.30.15, 18 Dec, 2023]-638384955075875983.png)
DOGE Transaction Volume and price. Source: Santiment
Between December 1 and 18, DOGE retail wallet address cohorts scooped up the token while large wallet holders shed their holdings, as seen in the chart below. This is another indicator of a possible recovery in the asset’s price.
 [16.35.10, 18 Dec, 2023]-638384955490515194.png)
DOGE wallet address holdings of different cohorts. Source: Santiment
DOGE price eyes comeback above $1
According to IntoTheBlock data, DOGE price is above major support zone between $0.073 and $0.085. At the time of writing, DOGE price is $0.088. At the current price, nearly 78% wallet addresses holding DOGE are sitting on unrealized gains.
DOGE price faces key resistance in the range $0.092 to $0.097. Once the meme coin flips this resistance into support, a revisit to the $1 level is likely.
Global In/Out of the Money. Source: IntoTheBlock
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
