Meme Coin Market is experiencing a comeback and is riding the broader waves of Crypto Market Rally. The sector’s total market capitalization has skyrocketed to a 30-day high of $85.28 billion.
Dogecoin (Doge), the largest meme asset by market capitalization, led the rally, posting the strongest profits of the top five meme coins in the past seven days.
Doge Surges is 32%, but long-term holders are quietly cashing out
Doge has grown 32% over the past week, trading at $0.2743 at press time. This double-digit price rally is because on-chain data shows a sharp increase in indicators of coin vibrancy. This is a signal that long-term holders (LTs) are actively moving or selling.
According to GlassNode, its vibrancy is growing amid last week’s Doge price surge. It closed at 0.706 on July 20th, and has risen 0.14% since July 13th.
Vitality measures the movement of long tokens by calculating the ratio of coin days to the total accumulated coin days. When it falls, it indicates that LTH is moving assets off the exchange and choosing to hold. This is often a sign of accumulation and can drive asset prices rising.
Conversely, climbing suggests that more dormant tokens are being moved or sold, often informing long-term holders of profits.
Paper Hands Driving Prices to Highs in February
Interestingly, despite this wave of sales pressure amongst LTHS, Doge’s prices are resilient, maintaining an upward trajectory and showing no immediate signs of a reversal. This confirms that short-term holders (so-called paper hand) are currently driving the rally, taking advantage of the broader market momentum.
Doge’s Aron Up Indicator, which is currently 100% read, supports this bullish momentum. The AROON indicator is a technical analysis tool used to identify trend orientation and intensity by measuring the time that has elapsed since the most recent high or low value.
If Aron Up Line is at 100% or near it, it suggests that recent price action has consistently hit new highs, indicating strong bullish momentum. This applies to Doge, which trades at the price level last observed in February.
At 100%, Doge’s Aron Up Line shows that the coin is making new highs, and it’s doing all the time in Aroon’s Lookback window. This indicates a very strong and consistent upward trend.
Doge invades bullish formations – $0.33 Next stop?
Doge double-digit gatherings have increased trends within Daily Chart’s rising parallel channel. This pattern is formed when the asset price moves between two upward slops, parallel trend lines, one serving as a resistance and the other serving as a support.
It shows a strong, stable uptrend with higher and higher lows. Bullish momentum is considered as is as long as prices stay within the channel. If the buy side pressure is strong, Doge could break above $0.28, potentially extending profits to $0.33.
However, if demand drops, Doge’s value could slip to $0.23.
Disclaimer
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