Usman Salis
Dogecoin (DOGE) just broke out of its boring sideways action, hitting fresh daily highs since September 7. The meme coin king is now trading at $0.2373 after a solid 10% pump in just two days - and the smart money isn't selling.
Here's what's really interesting: while DOGE was climbing, on-chain data shows profit-takers basically went quiet. That's usually when the real moves happen.
DOGE Rallies as Network Activity Explodes
The numbers don't lie. DOGE's rally coincided perfectly with a massive spike in daily active addresses since September 7. We're talking about real users actually using the network, not just speculation.
Santiment data shows unique active addresses jumped 16% in the past two days. That's huge because it means genuine demand is driving this move, not just degenerate gambling.
When you see more wallets getting active while the price goes up, it's usually a green flag. More users means more liquidity, and more liquidity means the price can actually sustain these levels instead of dumping back down.
But here's the kicker - DOGE's Network Realized Profit and Loss (NPL) is actually dropping. It's sitting at 2.46 million and falling, which means fewer people are taking profits right now.
Why DOGE Holders Aren't Selling (And What It Means)
The NPL metric is basically a profit-taking thermometer. When it's high, everyone's cashing out. When it's dropping like it is now, people are holding tight.
Think about it - if you're not selling when the price is pumping, you probably think it's going higher. And when enough people think that way, it becomes a self-fulfilling prophecy.
This holding behavior is creating a supply squeeze. Less DOGE hitting the market means buyers don't have to fight through a wall of sellers. That's rocket fuel for price action.
DOGE Price Prediction: $0.2557 Next, But Watch This Level
With HODLers staying put, DOGE looks primed to test $0.2557 next - that's roughly 8% from here. The path looks pretty clean with minimal resistance in between.
But here's the catch: $0.2347 needs to hold as support. If DOGE can't defend this level, we could see a pullback to $0.2203 where the breakout started.
Usman Salis
