These on-chain metrics point to exponential growth in DOGE price
The DOGE price outlook has been extremely bullish over the past few weeks due to its rise.
As DOGE overcomes a key hurdle, memecoin is likely to see more gains, some on-chain metrics show. On-chain analysis was used to thoroughly examine the feasibility of a potential price increase for this memecoin.
Four Dogecoin on-chain metrics hint at a bullish outlook
The four on-chain metrics examined are: Number of transactions, Age of consumption, Market value to fair value ratio (MVRV), Large transactions.
According to data from Santiment, the spike in transactions shows that DOGE investors are more active than usual, which means there is demand for memecoin.
This figure skyrocketed from 1.22 billion to 9.2 billion DOGE transactions in a 48-hour period.
Similarly, the Age of Consumption indicator also had a large increase during the above period. Elevated levels of token age suggest a significant amount of previously dormant coins are moving again and often indicate short-term behavioral changes among market stakeholders.
Along with the Number of Transactions index, the recent increase in the Age of Consumption index is a sign of a local bottom forming. Previous spikes in November 2023 and January 2024 both led to large DOGE price increases.
Meanwhile, the 7-day and 30-day Market Value to Fair Value (MVRV) ratios are fluctuating around 6.62% and 14.38%, respectively, indicating very low unrealized gains . This index is used to calculate an investor's average profit/loss over a specific time frame.
A higher MVRV ratio shows that most holders are enjoying unrealized profits and are considered bearish, as these holders can sell their coins and start to adjust. Likewise, a large negative MVRV is theoretically bullish and could signal that it is the right time to accumulate the token.
