Dogecoin price reaches new highs as short-term holders increase

Leading meme coin Dogecoin (DOGE) has seen a significant price increase over the past week, outperforming its top meme coin rivals. During this period, DOGE rose by 23%, Shiba Inu (SHIB) rose by 14%, and Pepe (PEPE), gained 4%.

With DOGE short-term holders (STHs) extending their holdings, the price of MemCoin may continue its upward trend in the short-term.

Dogecoin Short Holders Fuel Rally

According to IntoTheBlock, DOGE's STHs (those who have held the asset for less than a month) have increased their holdings by 110% in the past month.

As asset STHs increase their duration, investor sentiment indicates a shift from short-term considerations to a longer-term investment approach. This will reduce the overall selling pressure on the cryptocurrency and help stabilize prices and prevent a major fall.

Short-term holders (STHs) play an important role in price volatility, because they respond quickly to market movements and make quick changes in their trading activities. As STHs extend their tenure, they reduce selling pressure, potentially creating conditions for asset prices to stabilize and move higher.

Additionally, DOGE's positive funding rate of 0.0011% at press time supports this bullish view. This is the periodic fee paid between traders in a perpetual futures contract so that the contract price matches the spot price of the asset.

Positive funding means that long positions (buyers) are paying off short positions (sellers), indicating bullish sentiment and high leveraged long interests.

Doge Price Prediction: Short-term holders should HODL

If DOGE's STHs continue their hodling pattern, the price could extend its uptrend and touch the four-year high of $0.48.

However, a negative shift in strategy invalidates this crash prediction. If this group of DOGE holders starts selling for a profit, it could cause the price of MemCoin to drop to $0.299.