Even though Dogecoin has faced a recent dip in price, investors remain bullish about its long-term future, according to market data from Tuesday.
As of April 16, the price of Dogecoin had fallen to $0.153, down from a recent high of $0.168 on April 13.
This drop represents a 3% decrease within just 24 hours, following a temporary price increase sparked by U.S. President Trump’s announcement on April 10 to halt tariffs on certain countries.
Long Positions Show Confidence in Dogecoin’s Future
A closer look at trading behavior on Binance reveals a strong sense of confidence in Dogecoin’s recovery.
Data from Coinglass reveals that over 74% of traders hold long positions in the cryptocurrency, while only 25% are betting against it.
This high long-to-short account ratio of 2.90 reflects widespread optimism.
Notably, long positions surged rapidly on April 12, signaling that investors are hopeful about Dogecoin’s rebound after this brief correction.
Furthermore, positive funding rates have remained above zero since April 7, indicating that investors are willing to pay premiums to hold their positions.
Changes in Holding Patterns Among Dogecoin Investors
According to IntoTheBlock, there’s been a noticeable shift in how Dogecoin is being held.
Investors holding DOGE for over a year have slightly increased by 0.13%, showing that long-term holders continue to support the cryptocurrency.
However, the number of mid-term holders (those holding for 1 to 12 months) decreased by 2.5%, while short-term traders, or those holding for less than 30 days, saw a massive 109% increase.
This surge in short-term traders reflects growing interest from individuals looking to capitalize on Dogecoin’s price movements for quick profits.
What Does Technical Analysis Say About Dogecoin’s Price Future?
Looking at Dogecoin’s price movement, one analysis by FuaCompany on TradingView suggests two potential future scenarios.
The first scenario involves Dogecoin bouncing back from its current price of $0.15, as it did previously when it surged from $0.05 to higher levels.
The second possibility sees a brief drop below the lower edge of its current channel, potentially reaching as low as $0.08, before surging higher again.
Both scenarios suggest a bullish outlook in the long term, with some projections even predicting Dogecoin could reach $0.70 in the future.
Weekly Performance Shows Overall Positive Growth
Despite the recent downturn, Dogecoin has experienced a net positive performance over the past week.
It has seen an increase of about 7.4% over the last seven days, which highlights its ability to recover even after a short-term slump.
Dogecoin’s price showed initial volatility at the start of April, then strengthened following President Trump’s tariff announcement.
After peaking at $0.168 on April 13, the cryptocurrency entered a consolidation phase, where prices are expected to trend sideways for a period before potentially rising again.
What’s Next for Dogecoin?
Market observers note that such patterns—gains followed by periods of consolidation—are common in the cryptocurrency world.
The majority of traders, based on the high volume of long positions, view the current drop in Dogecoin’s price as temporary.
Most believe it’s just a minor setback before the cryptocurrency continues its upward trend.
This confidence suggests that Dogecoin’s future still holds a great deal of promise, despite the current market fluctuations.
With the ongoing interest in Dogecoin, investors will likely continue to monitor these price trends, looking for the next big move in the market.
The optimism surrounding its long-term prospects remains strong, making it one to watch closely as the year unfolds.