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70% of Dogecoin Holders Becoming Long Term Following Golden Cross: Crypto Market Review, Dec. 6

Tue, 12/06/2022 - 23:50
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Arman Shirinyan
Meme coin's holder composition is main reason behind solid price performance
70% of Dogecoin Holders Becoming Long Term Following Golden Cross: Crypto Market Review, Dec. 6
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The recovery rally of the cryptocurrency market that originated in the last week has lost most of its momentum as the majority of digital assets tumbled back to their lows or lost most of the volatility they gained previously. Nevertheless, long-term indicators show that most assets have a lot of potential.

Dogecoin becoming serious

The price performance of the first meme coin on the market surprised many investors, especially given the depressing state of the cryptocurrency market. Traditionally, almost every DOGE rally ended in a manner similar to previous ones: short-term holders made a significant profit in a relatively short period, taking profits as soon as the meme coin reached the local resistance level or became overbought for the first time.

During this rally, the rule does not apply: according to holders' distribution indicators, almost 70% of all DOGE holders purchased the assets more than a year ago. Traditionally, investors who chose to hold assets for over a year tend to take profits only after an asset passes the previous ATH mark.

Thanks to a healthier holder distribution, DOGE has a real chance to continue moving upward despite facing a correction recently. The golden cross we witnessed on the daily chart of DOGE a few days ago is yet another factor in favor of the prominent meme coin. 

With the stabilization of holders on the market, the golden cross between the 200- and 50-day moving average, the only thing Dogecoin would need to continue the rally is a general push from the market, which is currently battling with increased selling pressure.

At press time, Dogecoin is trading at $0.1 price level and losing around 1% of its value in the last 24 hours.

Shiba Inu denied reversal

The unexpected volatility spike on Shiba Inu we witnessed yesterday caused a significant spike in selling pressure, most likely triggering automated market makers or trading bots that bombarded the meme token with selling orders, causing an immediate reversal below the resistance level.

As expected, SHIB could not find enough power to repeat a run to the $0.00001 threshold and quickly returned to the usual trading range. Despite depressing returns since the beginning of the month, Shiba Inu has been moving in a stable uptrend for the last two weeks and reached short-term resistance levels with no trouble.

Yesterday's pump was most likely a breakout attempt initiated by whales or large retail buyers since volume profiles showed an unusual spike that brought the token above the $0.00001 price level.

At press time, Shiba Inu is trading at the $0.0000093 price level and losing around 0.4% from its value in the last 24 hours. The annual return of SHIB token for investors is at -81%.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.