Dogecoin Rockets Up 12%, But This FOMO Signal Could End Rally

| Source: Santiment on X

As displayed in the above graph, most of the assets have registered an increase in Total Amount of Holders recently, but Bitcoin has gone against the grain as its non-zero wallets have declined instead.

More particularly, the number one cryptocurrency today hosts 211,500 less addresses compared to three weeks ago, which has brought the metrics value to 54.38 million.

This means that some investors of the asset dont believe the current rally would continue further, as they have decided to liquidate their holdings at the recent prices.

Historically, assets in the sector have tended to be sensitive to investor sentiment, but the relationship has been an inverse one: prices tend to go up when investors are showing FUD, while they go down in times of FOMO.

Thus, the recent drop in the Total Amount of Holders may actually prove to be a bullish sign for Bitcoin. From the chart, its visible that the metric has shown the opposite trajectory for Dogecoin, as 46,400 addresses with a balance have showed up on the network in the past week alone.

“This is a sign of traders speculating and gambling on meme coins, even after last weeks local top,” notes the analytics firm. Going by what history tells us, this FOMO may not be the best sign for Dogecoin.

DOGE Price

Dogecoin has continued its latest bullish push during the last 24 hours as its price has broken beyond the $0.168 mark. Given the FOMO that has been developing, however, this run may not be sustainable.

The price of Dogecoin appears to have been sharply climbing over the last couple of days | Source: DOGEUSDT on TradingView