Dogecoin (DOGE), the leading meme cryptocurrency, has seen a notable price increase in the past week, outperforming competitors like Shiba Inu (SHIB) and Pepe (PEPE). During this period, DOGE has risen 23%, surpassing SHIB's 14% and PEPE's 4% gains.
With Short-Term Holders (STHs) of DOGE extending their holding period, the price of this meme cryptocurrency may continue its upward trend in the short term.
Short-Term Holders Driving Dogecoin's Upward Momentum
According to IntoTheBlock, DOGE's STHs (those holding assets for less than a month) have increased their holding period by 110% over the past month.
When STHs of an asset increase their holding time, it indicates a shift in investor psychology from short-term speculation to long-term investment. This reduces selling pressure in the cryptocurrency market, helping to stabilize prices and prevent sharp declines.
STHs play a crucial role in price momentum, as they react quickly to market fluctuations and create immediate volatility through their trading activity. When STHs extend their holding period, they reduce selling pressure, helping to stabilize asset prices and enabling further growth.
Furthermore, DOGE's positive Funding Rate, currently at 0.0011% at the time of writing, supports this bullish outlook. This is the periodic fee between traders in perpetual Futures Contracts to keep the contract price aligned with the spot price of the underlying asset.
A positive Funding Rate means that long positions (buyers) are paying short positions (sellers), indicating optimistic sentiment and high demand for leveraged long positions.
DOGE Price Forecast: Short-Term Holders Must HODL
If DOGE's STHs continue their hodling strategy, the price may extend its upward trend and reach a four-year high of $0.48.
However, a negative shift in strategy would undermine this optimistic forecast. If DOGE's STH group starts selling to take profits, the meme cryptocurrency's price could drop to $0.299.
