Dogecoin (DOGE) may be on its way to surpassing its previous high of 2024, thanks to a significant 28% rise in the past week. This price jump suggests that DOGE could soon reach this year's highest levels.
At the beginning of October, DOGE was trading around $0.10, raising concerns about a potential drop. However, the meme coin's growth has been supported by on-chain metrics that indicate this upward trend might continue.
Historical Perspective on Dogecoin: Bullish Signals
Dogecoin's price growth has been mainly driven by increased demand and significant accumulation among large holders or “whales.” Additionally, posts and comments from Elon Musk have helped $DOGE reach as high as $0.18.
According to Santiment, the current rally could just be the beginning, similar to March when DOGE climbed to $0.22. A key factor here is the long/short market value to realized value (MVRV Long/Short Difference), which tracks whether long-term holders are enjoying more unrealized profits.
A positive MVRV indicates higher unrealized gains for long-term holders, which is a bullish signal. In contrast, a negative reading indicates more profits for short-term holders, signaling a potential decline. Dogecoin has now recorded a positive MVRV for the first time since July, which could imply further price growth.
In the past, when the MVRV turned positive, DOGE rose from $0.10 to $0.13 within three months. If history repeats, Dogecoin's price could rise another 30% before the end of the year, potentially reaching an annual high of $0.23.
Increase in User Activity on the Dogecoin Network
Dogecoin has also seen a notable increase in the number of new and active addresses on the blockchain, indicating growing user engagement. This increase in engagement typically supports price growth and reduces the likelihood of a significant correction.
The influx of new addresses also demonstrates growing interest among retail investors, which may help sustain DOGE’s price rally.
DOGE Price Prediction: Another 30% Increase Possible
On the daily chart, Dogecoin has surpassed the resistance zone at $0.16. Historically, this level has often capped DOGE's price, as seen in April and June. However, the recent breakout above this level opens the possibility of further growth.
An important support level is now $0.10, which could help prevent a significant decline. Additionally, the Awesome Oscillator (AO), which measures momentum, is in positive territory, confirming DOGE's continued upward trend.
Given this outlook, Dogecoin may reach $0.23 before the year’s end. However, if network activity on Dogecoin decreases or demand weakens, DOGE could fall toward the $0.14 level.
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