- The Dogecoin community’s interest is growing, evidenced by a rise in active addresses, which reached 764,840 over the past month.
- The Market Value to Realized Value (MVRV) ratio has improved, indicating long-term holders are regaining confidence in DOGE’s price potential.
The Dogecoin (DOGE) price has managed a clean three-week bullish rise and has managed to sustain above its 200-day Exponential Moving Average. Expectedly, this upward stride has piqued loads of interest in the Dogecoin community. Moreover, market analysts are predicting an imminent uptrend for the dog-faced meme coin.
Dogecoin Price Mimics Historical Trend
Analysts have been comparing the current action of DOGE price and a pattern observed in 2020. The pattern is called the “Reversal Box” formation. On one hand, a top CEO from a crypto analysis firm pointed out that, even though the meme coin has formed three higher lows, breaking above crucial resistance levels already.
Historically, the “Reversal Box” pattern may display the loss of price stagnation and foretell the beginning of a rally. Higher lows will show decreasing selling pressure and growing market dominance by buyers, per the CNF report.
In 2020, when Dogecoin produced the same type of Reversal Box, the coin witnessed several outstanding price surges. While in the second half of that year, DOGE, from $0.0023 to $0.0048 and then later from $0.006 to $0.088, had accumulated an impressive gain of more than 1366%. Those rallies prepared the ground for Dogecoin’s 2021 bull run, in which it attained its ATH.
In this current analysis that happens to come with a nice view of Dogecoin price, there must be consideration of other crucial market indicators. For instance, the market’s sentiment and activity have been rising steadily in the last month so possibly favorable towards yet another rally. The active addresses in Dogecoin have been growing moderately, hitting a monthly level of 764,840, signifying more involvement and demand for the token, reported CNF.
DOGE Price Indicators
Another metric to monitor is Memecoin’s MVRV (Market Value to Realized Value) Long/Short difference ratio. Over the last month, this has increased from a low of -17.13 to -7.76. That change is showing long-term holders are regaining confidence in Dogecoin’s future price prospects. After selling pressure hits the market from short-term holders, the setup could become positive for a price reversal.
Apart from the MVRV ratio, inflows by large holders have also been on the rise over the week. Large holder inflow increased by 358.64%, from 252.92 million to 1.16 billion DOGE. This denotes that institutional investors, or even whales, are committing more capital to Dogecoin, expecting a continued hike in the price.
Moreover, the DOGE price has rebounded from a significant pullback lately. As of writing, the Dogecoin price stood at $0.139, marking a 2.06% gain within the last 24 hours. Moreover, DOGE has also managed a good show over the past month, posting a growth of 27.60%, per the CNF report.
In the near future, if favorable market conditions prevail, the Dogecoin price appears to be prepared for further upward impulse. According to crypto analyst forecasts, DOGE price may achieve the $0.1658 price soon if the bullish momentum persists.
