Dogecoin (DOGE) recently found itself in the middle of a storm caused by the lawsuit filed by the US Securities and Exchange Commission (SEC) against major exchanges Binance and Coinbase. As the media spreads fear, uncertainty and doubt regarding the legal process, the market value of this meme currency has seen a significant decline.
However, despite the turmoil, the on-chain data reveals that long-term loyalists of the Dogecoin community remain resolute in their support.
In the face of the media waning and the storm calming, a compelling question arises: Could this be the right moment for bull investors to take advantage of the decline and spur another impressive price recovery for DOGE?
Dogecoin (DOGE) holders are showing resilience amid market turmoil
According to a detailed on-chain analysis, it appears that the recent sell-off and price declines in DOGE were mainly driven by short-term traders rather than committed long-term holders. Santiment’s comprehensive chart illustrates this phenomenon, showing a significant increase in the average coin life within the Dogecoin ecosystem over the same period that the massive sell-off occurred.
DOGE Mean Coin Age. Source: Santiment
Examining data between June 1 and June 9, and Average coin age for DOGE It saw an increase of 5%, rising from 54,317 to 57,219. This upward trend in the average age of coins during the price rebound period is a promising sign, indicating growing confidence among long-term DOGE holders.
Remarkably, nearly 70% of the total supply of Dogecoin in circulation is currently held by long-term fixed investors who have held their positions for more than a year. With such a large portion of DOGE in the hands of committed holders, it stands to reason that if they continue to hold on to their coins, the price of DOGE is likely to rebound in the near future.
DOGE Social Volume Down: Potential Opportunity for Bull Investors?
Over the course of just four days, from June 5 to June 9, the program DOGE’S SOCIAL SIZE It saw a staggering 72% drop, dropping from 8,219 signals to 2,308 signals.
Santiment’s social volume meter acts as a reliable indicator of market sentiment by tracking the frequency of mentions of the project across various channels, including Twitter and related crypto-media platforms.
DOGE Social Volume. Source: Santiment
When social volume is experiencing a significant decline like the one noted above, it is indicative that many stakeholders are currently ignoring the asset.
This situation presents an opportunity for strategic investors looking to profit from market bottoms. It is common for bullish investors to strategically enter the market when sentiment reaches a new low, with the goal of buying assets at the lowest possible value.
$ dogg Looks like 🚀🚀🚀🚀🚀 today, a little promising and defying gravity pic.twitter.com/zHNj0BvHcU
– Thomas (@thomasnegeri) June 9, 2023
When interpreting this decline in social volume as a potential turning point for lower DOGE prices, bullish investors may consider this an encouraging sign. If this bullish outlook materializes, the crypto community believes so DOGE will regain its upward momentum And climb the charts again in the coming days.
Source: Coingecko
As of now, Queen Gekko Reports indicate that the current price of DOGE is at $0.060480, down 11.3% in the past 24 hours. Similarly, the cryptocurrency has seen a decline of 16.7% over the past seven days.
Featured image via Getty Images
