Is DOGE Bull Run Back?
The number of new investors in Dogecoin (DOGE) has increased in recent days, suggesting the potential for a price surge similar to the previous surge between September 23 and December 12. During this period, the price of DOGE climbed from $0.10 to $0.47.
Will the sudden influx of holders be the catalyst for a breakout, or will the meme coin experience another dip?
Investors Take New Dogecoin Positions on Historical Support
Between November 22 and December, the total number of Dogecoin holders dropped from 7.14 million to 6.8 million. Interestingly, this decline occurred at approximately the same time DOGE rally has lost steamthe price dropped from $0.47 to $0.39.
The price drop and dwindling number of holders suggest there was heavy profit-taking at the time. However, as of this writing, Santiment’s on-chain data suggests that has now changed.
According to data from the analytics platform, the number of DOGE holders has soared to 6.68 million. This means 60,000 new holders have actively Added meme coins into their wallet within the past 10 days.
A surge in the number of holders is often seen as a bullish sign that the cryptocurrency is attracting retail investors. Furthermore, this also happens in the era of cryptocurrencies Whales continue to play vital role In the direction of the coin. If this trend continues, the price of DOGE may exceed $0.42.
The market value to realized value (MVRV) ratio supports this argument. MVRV measures the ratio between a token’s current price and its average price at the time of purchase. The metric also assesses whether an asset is overvalued or undervalued.
Extremely high MVRV ratios indicate rising unrealized profit levels, suggesting the cryptocurrency may be approaching overrated state. Conversely, a lower MVRV ratio indicates that the asset is undervalued and a buying opportunity may exist.
As of this writing, Dogecoin’s 30-day MVRV ratio has reversed from negative to 0.69%. As mentioned earlier, the last time such a reversal occurred, the price jumped from $0.10 to $0.47. Therefore, if history matches current patterns, DOGE could experience another parabolic rally.
DOGE Price Prediction: $1 Target Remains
Technically, DOGE/USD daily chart Show formation bull flag. A bull flag is a pattern characterized by two bounces with a brief consolidation period in between.
As shown in the chart below, the pattern begins with a sharp, near-vertical price surge known as a flagpole, driven by aggressive buying that catches sellers off guard. What follows is a pullback that forms a “flag” pattern, represented by parallel upper and lower trend lines.
During the pullback, the initial advance slowed due to profit-taking, with prices consolidating within a tight range, making slightly lower highs and lower lows. Meanwhile, the price of Dogecoin appears to be on the verge of resuming its upward trend and may breakout.
Once verified, DOGE prices may rise to $0.60. In a highly bearish scenario, memecoin value could approach $1.
However, if the price falls below the lower trendline of the flag, then prophecy may be declared invalid. The decline in the number of new Dogecoin holders may also cause the price to drop. In this case, DOGE could drop to $0.33.
Disclaimer
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