In the last few weeks, Dogecoin’s (DOGE) price performance has been notably on the rise in the cryptocurrency world. This increase gained further momentum as DOGE overcame a significant barrier. However, it seems likely that more gains are on the way for the meme coin. On what basis do we say this? Based on four metrics, of course.
Metrics Point to a Mega Rally for Dogecoin
On-chain analyses show that Dogecoin‘s potential rally is based on solid ground. According to data from Santiment, the increase in transaction count indicates that DOGE investors are more active than usual. This situation signals high demand for the meme coin. In fact, transactions in the last 48 hours have risen from 1.22 billion to 9.20 billion DOGE.
Additionally, the Coin Days Destroyed indicator also recorded a significant increase during the same period. High token age levels indicate that a substantial amount of coins that were previously inactive are now moving again. This usually leads to short-term behavioral changes among market stakeholders.
Together with the Transaction Count metric, the recent rise in the Coin Days Destroyed metric is seen as a sign of a local bottom formation. Indeed, similar increases in November 2023 and January 2024 had led to major upward trends in Dogecoin’s price.
What Does the MVRV Metric Indicate?
According to the latest data, the 7-day and 30-day Market Value to Realized Value (MVRV) ratios are showing an unexpected downward trend. However, this situation is actually considered to be a potential opportunity for investors.
MVRV ratios are used to calculate the average profit/loss of investors over a certain time period. Currently, even though these ratios are low, the Large Transaction metric is on the rise, and an increased interest in Dogecoin by whales is being observed. The transaction behaviors of whales and institutional players can determine the direction of the market, and according to current data, an upward trend for Dogecoin can be expected.
Technical analysis also supports these expectations. The cryptocurrency Dogecoin is close to surpassing the weekly resistance level of $0.181. If this resistance-breaking activity is successful, doors could open to a 52% rise towards the next target of $0.279. This could satisfy current investors of Dogecoin and also attract new investors to the market.
