Critical development in Dogecoin (DOGE): It could start a rally!
There has been a remarkable increase in the number of new investors in Dogecoin ($DOGE ) in recent days. This development raises the possibility that the popular memecoin could experience a price rally similar to the one it saw between September 23 and December 12. During that period, DOGE's price rose from $0.10 to $0.47.
Between November 22 and December, the total number of Dogecoin investors fell from 7.14 million to 6.80 million. This decline coincided with the period when the #DOGE rally slowed down and the price fell from $0.47 to $0.39. The decline in price and number of investors indicates that investors realized their gains during that period. However, according to Santiment's on-chain data, this situation has begun to change.
The popular on-chain data platform reports that the number of DOGE investors has reached 6.68 million. According to this data, 60,000 new investors have added Dogecoin to their wallets in the last 10 days. This increase in the number of new investors is generally seen as a positive sign and indicates that the cryptocurrency is gaining popularity among individual investors.
This increase also comes at a time when crypto whales are continuing their influence on Dogecoin. If this trend continues, the price could rise above $0.42.
MVRV ratio supports the rise
The bullish trend in Dogecoin is supported by the Market Value/Realized Value (MVRV) ratio. The MVRV ratio measures the ratio between the current price of an asset and the average purchase price, and analyzes whether an asset is overvalued or undervalued. A high MVRV ratio may indicate that the asset is overvalued, while a low MVRV ratio indicates that the asset is undervalued and offers a buying opportunity.
As of writing, Dogecoin’s 30-day MVRV ratio has risen from the negative territory to 0.69 percent. When such a reversal occurred before, the price went from $0.10 to $0.47. If history repeats itself, #Dogecoin could experience a parabolic rally once again.
