Over the past week, there has been a noticeable decrease in the number of Dogecoin [DOGE] holders, reflecting potential dissatisfaction with recent market trends.
Interestingly, amidst this decline in holders, Dogecoin has experienced a significant uptick in its price, signaling the initiation of a bullish trend.
Significant Decrease in Dogecoin Holders
Recent data from Santiment indicates a marked drop in the quantity of Dogecoin holders in recent days.
An analysis of non-zero addresses has revealed a substantial sell-off, resulting in a reduction of over 106,000 holders.
While there were approximately 6.73 million holders on October 9th, this figure has now diminished to around 6.63 million.
Despite this reduction, Dogecoin continues to hold its position as the leading memecoin in terms of market capitalization, reaching nearly $17.3 billion according to CoinMarketCap’s latest update.
The decrease in holders suggests a shift in trader focus towards alternative assets, despite Dogecoin’s recent positive price movements.
Initiation of a Bullish Trend for Dogecoin
Ongoing price fluctuations point towards Dogecoin breaking out of its previous sideways trading pattern, coinciding with the decline in holders.
Following the sell-off, DOGE has observed a price surge of around 14%, transitioning its trend from bearish to bullish.
Presently, Dogecoin is trading at approximately $0.11 with a marginal daily increase. A thorough analysis of the price chart shows that during the onset of the decline in holders, DOGE was priced near $0.10.
A notable turning point was noted on October 11th, when Dogecoin experienced a 4% price hike, marking the commencement of its current bullish phase. Another 4% increase on October 14th further solidified this upward trend.
Assessment of Dogecoin’s Relative Strength Index (RSI) indicates a value of around 61 at present, affirming the emergence of the bullish trend.
The RSI suggests a strengthening buying pressure, potentially propelling the price higher should the trend persist.
Surge in Active DOGE Addresses
In tandem with the price surge, an intriguing trend has surfaced in the on-chain data – a notable rise in active Dogecoin addresses.
While the total number of holders has dwindled, there has been a spike in active addresses. Data analysis of the 7-day active address chart unveils approximately 176,000 active addresses on October 10th.
By October 12th, this figure surged past 290,000 and has now exceeded 294,000 as of the latest data.
This increase in active addresses indicates that despite the general decrease in holders, more Dogecoin addresses are actively engaging on the network.