Dogecoin (DOGE) holders’ growth has stopped after the increase in February. The Relative Strength Index (RSI) has fallen over the past week but continues to stay in the overbought region. This could indicate the continuation of potential selling pressure.
Increasing Holders in DOGE
The Exponential Moving Average (EMA) lines’ tendency to form a death cross could send a bearish signal for DOGE‘s price. This technical analysis indicates a shift in market sentiment as short-term momentum weakens compared to the long-term, raising concerns among investors about the future price direction of DOGE.
Between January 30 and February 10, there was a significant increase in the number of DOGE holders. Adding 500,000 new holders, it reached an impressive total of 6.3 million. Shortly after, the market value saw a notable increase over a two-week period, rising from $0.084 on February 26 to $0.18 on March 4. This data represents a significant growth of 114% in just six days. Throughout February, DOGE holders continued their ascent, rising from 6.34 million on February 10 to 6.51 million at the end of the month.
Current Data on DOGE
Despite this growth, there is a new trend that may indicate waning interest in DOGE. From March 9 to March 18, the number of DOGE holders fluctuated within a narrow range between 6.56 million and 6.57 million, which could be an indicator of a period of stagnation. This pattern holds particular importance for DOGE as significant increases in investor numbers have consistently been precursors to previous price surges. The current stagnation in the number of holders could indicate that DOGE’s price may soon stabilize or correct. In the last two weeks, DOGE’s 7-day Relative Strength Index (RSI) significantly rose from 81 to 70.
The cryptocurrency’s RSI was above 80, yet the price continued to rise. Readings above 70 can indicate that a token may be in overbought territory. This could be followed by a price adjustment or a consolidation period. The pullback of DOGE’s RSI from high levels could indicate that the bullish momentum has slightly eased. Being near the overbought zone often signals an approaching phase of price stability as the market tries to find a new balance.
