Cryptocurrency prices have seen a resurgence recently, with meme coins like Dogecoin, Shiba Inu, and Pepe leading the charge with double-digit gains over the past week. This rebound was sparked by Bitcoin’s impressive rally above $68,000, which generated increased buying interest across the market. Dogecoin, in particular, has been making waves with its recent surge, attracting whale investors and surpassing key resistance levels. Analysts are now predicting a potential 50% increase in DOGE’s price as multiple on-chain metrics turn bullish.
Dogecoin’s participation in the “Uptober” rally has been accompanied by strong on-chain metrics that highlight the coin’s growing popularity. Data from IntoTheBlock shows a significant 900% increase in net inflows into wallets holding at least 0.1% of the total Dogecoin supply in the past 24 hours. This surge in whale accumulation amounts to 527.3 million DOGE, valued at around $63 million.
The momentum behind Dogecoin’s price surge appears to be sustainable, as indicated by CoinGlass data showing an 85% increase in the coin’s 24-hour trading volume, reaching an impressive $4.6 billion. This surge in trading activity, coupled with a 35.53% jump in Open Interest (OI) to approximately $994 million, suggests that a potential rally for Dogecoin may be on the horizon.
However, the rising MVRV ratio for Dogecoin, currently at 1.27, could lead to liquidations as the market value outpaces the last realized value. This imbalance may prompt holders to sell near a local peak, potentially triggering a significant pullback in the price.
Looking ahead, Dogecoin has broken above a symmetrical triangle pattern, signaling bullish momentum. The price has surged above key resistance levels, reaching a high near $0.14 before a minor correction. As of the latest data, DOGE is trading at $0.137, reflecting a 5.8% increase in the past 24 hours.
If the price manages to sustain above the EMA20 trend line, the DOGE/USDT pair could rally to $0.17 and potentially reach the critical level of $0.19. On the other hand, a reversal below EMA20 would indicate a failed breakout, with the pair likely dropping to $0.115, a crucial support level. A bounce off the 20-day EMA would suggest a bullish continuation for Dogecoin.
In conclusion, Dogecoin’s participation in the recent market rally, coupled with strong on-chain metrics and increasing trading volume, positions the meme coin for further gains in the near future. However, caution is advised due to the potential for liquidations as the MVRV ratio rises. Investors should closely monitor key support and resistance levels to navigate the volatile cryptocurrency market successfully.