- Dogecoin surged amid speculation of an altseason, with 75% of Binance traders going long.
- However, long-term holders are cashing out, raising doubts about the rally’s sustainability.
Dogecoin Resurgence: A Sign of Altseason?
Dogecoin (DOGE) has reclaimed the spotlight with a sharp price surge, sparking renewed speculation of an upcoming altseason. The memecoin’s price rally has drawn attention as 75% of Binance Futures accounts have gone long on DOGE, reflecting strong bullish sentiment. However, beneath this optimism, a different story unfolds.
Long-Term Holders Cash Out
While short-term traders are bullish, long-term holders (LTHs) have begun to exit. Data from Santiment’s age-consumed metric shows that older DOGE tokens are moving at the highest rate since June 2023, suggesting that seasoned holders are taking profits. This exit of experienced holders could be a cautionary signal, even as social buzz around DOGE hits new highs.
A Battle Between Optimism and Caution
The surge in DOGE’s social volume and the 75% long positions on Binance hint at a potential altseason. Historically, Dogecoin has been an early indicator of broader altcoin market rallies. But the current excitement is tempered by overbought conditions, with DOGE’s Relative Strength Index (RSI) at 73.5, signaling a possible short-term correction.
Dogecoin Price Outlook: Cautious Optimism
At the time of writing, DOGE trades at $0.2482, with an impressive 7% daily gain. The price action suggests a push toward $0.30, but the overheated RSI points to a potential correction. A critical support level at $0.23 could provide a cushion if a pullback occurs.
Traders should monitor the ongoing struggle between bullish momentum and profit-taking by long-term holders. A successful breakout above $0.30 could validate the altseason narrative, while failure to maintain gains may spark further selling pressure.
