Dogecoin Rally Continues Despite Absence of Usual FOMO Surge

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Despite being amidst a fervent rally, Dogecoin seems not to have elicited the FOMO (Fear of Missing Out) that typically accompanies such upward thrusts. This observation, dressings from on-chain data, subtly hints at a possibly positive prospect for the continuation of the rallying tide.

The crucial indicator in the present narrative is the “Total Amount of Holders.” This metric serves as a mirror reflecting the sum total of non-zero Dogecoin addresses presently active. A rise in the indicator’s value could trace its lineage to several rationales. One primary explanation is the introduction of new players to the field, opening fresh addresses and stocking them with Dogecoin wealth. Subsequently, this reflects in upping the value of the indicator.

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Several other stimuli could cause this surge. For instance, current holders might be spreading their Dogecoin accumulations across multiple addresses for purposes such as increased privacy. Alternatively, former investors might be retracing their steps back to the meme coin market. Essentially, a rising trend in this metric is evidence of an ongoing net adoption, which in the grand scheme of things, might spell out a favorable development for the long haul.

Flip the coin, and a diminishing indicator is suggestive of a subset of cryptocurrency holders making a grand exit, having depleted their accounts.

As per the following chart, the Dogecoin Total Amount of Holders appears to be locked in a stalemate over the past few months, indicating that the influx of newcomers to the meme coin market has plateaued. This arrest in growth stands in stark contrast to the pulsating price antics of Dogecoin in the same timeframe.

Common sense dictates that frenzied price rallies act as a magnet for traders, luring in considerable numbers. However, the recent Dogecoin rally seems to be an exception to the rule, with traders either turning a blind eye or not taking it seriously.

Over the past fortnight, the ‘Total Amount of Holders’ of Dogecoin has nudged up by a mere 0.21%, a trickle compared to the 40% price rally within the same timeframe.

Traditionally, a mass influx of traders during a price surge — a testament to spreading FOMO — could hint at a potential peak. However, given the uncharacteristic lack of FOMO around Dogecoin, it could potentially be an encouraging sign for the continuation of the rally.

Yet, there’s also a contrarian signal simmering in the charts. The Mean Dollar Invested Age metric, a gauge for the average age of Dogecoin investments, has seen a recent drop, suggesting that seasoned investors are in motion. Earlier this year, a similar pattern presaged a price peak shortly thereafter.

While Dogecoin had earlier crested the $0.22 mark, it has since experienced some pullback, now floating just below $0.21. Despite this drawdown, the trajectory of the meme coin’s value seems to be on an upward curve of late. The question now is, will this ascension continue and change the course of Dogecoin’s adoption, or will the stasis hold steady?