Huge Increase in New DOGE Investors! Is History Repeating? $0.6 is Near, Countdown to $1!
In recent days, the number of new investors in DOGE#DOGE# has clearly increased, indicating the possibility of a bull run similar to the period from September 23 to December 12. At that time, the price of DOGE rose from $0.10 to $0.47.
Could the influx of these new owners be a catalyst for a price breakout, or will DOGE see another decline?
From the historical support point, investors started betting on new DOGE positions.
From November 22nd to December 22nd, the total number of DOGE holders dropped from 7.14 million to 6.8 million. It is worth noting that this drop occurred at a time when DOGE’s bullish trend was losing momentum, and the price also dropped from $0.47 to $0.39.
The falling price and declining number of owners suggest that there was a lot of profit return in the market at that time. However, so far, Santiment’s on-chain data suggests that this situation has changed.
According to the data of this analysis platform, the number of DOGE owners has increased to 6.68 million, which means that about 60 thousand new investors have added this meme coin to their wallets over the past 10 days.
An increase in the number of coin owners is usually considered a bullish signal, meaning that more retail investors are starting to take interest and buy this cryptocurrency. Additionally, large investors continue to play an important role in the direction of the token’s price when such a situation occurs. If this trend continues, the DOGE price could surpass $0.42.
The MVRV (Market Value to Intrinsic Value) ratio further supports this point. MVRV measures the ratio of the current token price to the average acquisition price of the token, and helps assess whether an asset is overvalued or undervalued.
When the MVRV ratio is high, it means that unrealized gains are on the rise, indicating that the cryptocurrency may be close to an overvaluation state. Conversely, when the MVRV ratio is low, it indicates that the asset may be undervalued, and there may be a potential buying opportunity.
So far, DOGE’s 30-day MVRV has gone from negative to 0.69%. It should be noted that when this reversal occurred last time, DOGE’s price rose from $0.10 to $0.47. Therefore, if the historical pattern repeats itself, DOGE could see another sharp bounce.
DOGE Price Prediction: $1 Target Still On
From a technical analysis point of view, the daily chart of DOGE/USD pair indicates the formation of a bull flag pattern. A bull flag pattern usually consists of two consecutive rallies with a short rally period in the middle.
As you can see in the chart, this pattern starts with a sharp, almost vertical rise, the flagpole section, which is usually driven by a large amount of bidding, making it impossible for sellers to keep up. The pullback section then forms a “flag”, which is represented by parallel up and down trend lines.
During the correction process, due to profit taking, the initial momentum slows down, with the price trading in a narrow range with higher highs and lower lows. Meanwhile, DOGE price seems to be about to regain the uptrend with an increased probability of a breakout.
Once this pattern is verified, DOGE price may rise to $0.60. If the market sentiment continues to be bullish, DOGE may even be able to cross the $1 barrier.
However, if the price drops below the downtrend line of this pattern, this prediction may be invalidated. At the same time, a decrease in the number of new DOGE holders may also pull the price down. In this case, DOGE may drop to $0.33.
