DOGS appears to have ended its bearish streak, based on its performance this month. This raises the possibility of a price recovery in the coming weeks, and this scenario may have already begun.
DOGS has just recorded its strongest price performance in the past six weeks in the past two days, with a 23% increase.
This is a sign that the cryptocurrency may be facing further upside potential, especially as selling pressure has stabilized in the first 10 days of October.
At the time of writing, DOGS is trading at $0.000778. The MFI (Money Flow Index) shows that liquidity has started to return to the memecoin since the beginning of the month, creating bullish momentum.
Is DOGS Ready for a Strong Rebound?
DOGS’s latest performance shows significant accumulation at its recent bottom. However, to sustain its bullish momentum, DOGS needs to attract new inflows, which may not be too difficult given its growing popularity.
Recent on-chain data suggests that DOGS may be able to maintain its current position. Specifically, DOGS is currently the leading token on TON in terms of number of holders, with 5.6 million holders. The total number of wallet addresses with a balance peaked at 6.36 million on September 24, but has decreased by about 780,000 since then.
However, DOGS has a total of about 12.05 million addresses, which means that about 6.05 million addresses currently have zero balances. The number of zero balance addresses appears to have started to stabilize, suggesting that selling pressure has eased.
However, it is worth noting that the wallet address activity has not shown a clear positive change, despite the recent price increase. In other words, DOGS has not shown strong accumulation yet.
However, a small change in market sentiment has occurred recently, which may favor the bulls. The number of buyers has exceeded the sellers for four consecutive days since October 8, in stark contrast to the sentiment in September.
In conclusion, DOGS has shown many signs of a possible long-term uptrend. However, a clear change in the accumulation activity of wallet addresses is needed to confirm this trend with more certainty.
