After the recent release of court documents, concerns about the possible liquidation of $42 million worth of dog currency assets by FTX have been somewhat alleviated. This news has led to a slight increase in the price of dog coins this week, reaching $0
After the recent release of court documents, concerns about the possible liquidation of $42 million worth of dog currency assets by FTX have been somewhat alleviated. This news has led to a slight increase in the price of dog coins this week, reaching $0.062. At the same time, on chain data analysis is also exploring how the confidence of long-term investors may drive the price of dog coins further up.
Last week, preliminary reports showed that FTX Exchange was preparing to divest $42 million worth of dog currency to repay creditors as part of the ongoing bankruptcy proceedings. This news has led to a difficult period for the price of dog coins. However, official court documents show that Dogcoin did not even appear on the top 10 encrypted asset lists among FTX's $3.4 billion assets. Subsequently, the price of dog coins slightly increased from $0.060 to $0.062.
In the past month, the overall performance of the cryptocurrency market has been weak, with many of the top 100 cryptocurrency projects, such as LTC, SAND, and APE, falling to annual lows.
However, during this difficult period in the market, Dogcoin successfully remained above $0.060, attracting people's attention. On chain data shows that the positive trend of long-term investors is very significant. Data shows that long-term holders increased their balance by 1.2 billion dog coins between August 14th and September 15th, while short-term investors sold 1.56 billion tokens.
Long term holders refer to investors who have dormant tokens for a year or more. This overweight behavior is seen as a bullish signal, especially when there are negative market fluctuations. This may attract new participants, but it may also lead investors to trade based on the expected price of dog coins. If this trend continues, the price of dog coins may rise in the coming weeks.
The current relative intensity index (RSI) trend further supports this viewpoint. Since September 11th, the daily RSI of Dog Coin has been on an upward trend, reaching 40.45 on September 15th. RSI is an indicator that measures the strength and momentum of price trends. The rise of RSI to around 40 indicates that the market is recovering from oversold and moving towards a more balanced or neutral direction. In short, if long-term investors continue to maintain confidence, the price of dog coins may continue to rise.
From the chart, it can be seen that once the broader cryptocurrency market sentiment becomes bullish, dog coin prices may experience a greater increase. However, it should be noted that there may be a selling wall around $0.07, which may become the main resistance for investors.
The global data on capital inflows/outflows around prices also confirms this view, showing the distribution of entry prices for current dog coin holders. If the price breaks through the resistance level, bulls may push the price of dog coins up to $0.08. However, if the price falls below $0.055, there may be a long-term decline, although this possibility is unlikely. If the price fails to maintain this support level, the price of dog coins may drop to $0.055.
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