Dogecoin Rises Over 12% Amid FOMO Signals Indicating Possible Rally End
Dogecoin has increased over 12% in the past day, but an on-chain indicator could indicate a bearish trend ahead.
Dogecoin Investors Displaying FOMO
On X, Santiment reported on trends in the Total Amount of Holders for major cryptocurrencies. The "Total Amount of Holders" tracks addresses on a network with non-zero balances. A rising value indicates new investors entering or existing holders buying back into the coin. It may also reflect users splitting holdings across multiple wallets for privacy.
A downward trend suggests some holders are liquidating their assets, potentially signaling a lack of confidence in the cryptocurrency market.
The chart below illustrates the Total Amount of Holders for Bitcoin, Dogecoin, and other top assets:
Recent data shows most assets have experienced increases in holders, while Bitcoin has seen a decline of 211,500 addresses over three weeks, now totaling 54.38 million. This decrease implies some investors do not foresee continued price rallies, leading to liquidation at recent prices.
Historically, investor sentiment has influenced asset prices inversely: prices rise during fear (FUD) and fall during greed (FOMO). The drop in Total Amount of Holders for Bitcoin may indicate bullish potential, contrasting with Dogecoin, which has added 46,400 addresses in the past week.
Santiment notes this trend reflects traders speculating on meme coins, suggesting that current FOMO may not bode well for Dogecoin's future.
DOGE Price
Dogecoin's price has surpassed $0.168 amid its latest bullish push. However, developing FOMO raises concerns about the sustainability of this upward movement.
