- DOGS could be the next best bullish opportunity now that sell pressure has subsided, followed by a slight bounceback.
- Evaluating market sentiment shift alongside address activity.
It is now over six weeks since the DOGS memecoin launched. It initially rallied for the first three days and has since then lost almost all its initial gains courtesy of the sell pressure that prevailed in September.
DOGS appears to have run out of its bearish momentum, judging by its performance so far this month. This raises the probability of a bullish relief rally in the coming weeks, and that outcome may already be playing out.
DOGS just delivered its most bullish performance within the last six weeks, courtesy of the 23% rally it achieved in the last two days.
This is a sign that the cryptocurrency may be on the verge of more potential upside, especially considering that sell pressure leveled out in the first 10 days of October.
DOGS traded at $0.000778 at press time. Its MFI suggests that liquidity has been flowing back into the memecoin since the start of the month, thus the bullish buildup.
Source: TradingView
Is DOGS ready for a bullish recovery rally?
DOGS’s latest performance suggests that there was significant accumulation at its recent bottom range.
However, it will require more liquidity inflows to sustain more bullish momentum, a mission that may not be so difficult considering its latest popularity.
Recent on-chain data suggests that it could be in a position to maintain that status. For example, DOGS is currently the leading token on TON in terms of ownership, with 5.6 million holders.
The total addresses with balances peaked at 6.36 million addresses on the 24th of September but have since dropped by roughly 780,000 addresses.
However, DOGS has about 12.05 million total addresses, which means roughly 6.05 million addresses have zero balance.
Source: IntoTheBlock
The total zero balance addresses appeared to be levelling out, which indicates a slowdown in sell pressure.
However, it is worth noting that addresses activity did not demonstrate a significant positive shift despite the recent uptick. In other words, the DOGS memecoin is yet to demonstrate strong accumulation.
Nevertheless, a slight change in sentiment occurred recently, which may be in favor of the bulls.
Read Dogs’ [DOGS] Price Prediction 2024, 2025
The number of bulls outweighed the bears for four consecutive days since the 8th of October, a contrary outcome to the sentiment in September.
Source: IntoTheBlock
In conclusion, DOGS has flagged multiple signs of potentially shifting to a long term bullish recovery. However, address activity needs to demonstrate a clear shift in favor of accumulation for more clarity.
