Recent days have seen a significant increase in the number of new investors in Dogecoin ($DOGE ). This development increases the possibility that the popular meme coin will see a price surge similar to the one it saw between September 23 and December 12. During that period, Dogecoin’s price rose from $0.10 to $0.47.
Between November 22 and December 22, the total number of Dogecoin investors dropped from 7.14 million to 6.80 million. This drop coincided with a period when #DOGE’s rally slowed and the price dropped from $0.47 to $0.39. The drop in price and number of investors suggests that investors realized their profits during that period. However, according to Santiment’s on-chain data, this situation is starting to change.
The popular blockchain data platform reports that the number of Dogecoin investors has reached 6.68 million. According to this data, 60,000 new investors have added Dogecoin to their wallets in the past 10 days. This increase in the number of new investors is generally a positive sign and shows that the cryptocurrency is gaining popularity among retail investors.
This increase also comes at a time when crypto whales are still influencing 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 relationship between the current price of an asset and the average purchase price, and analyzes whether the 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 presents a buying opportunity.
As of this writing, Dogecoin’s 30-day MVRV has risen from negative territory to 0.69 percent. When such reversals have occurred before, the price has moved from $0.10 to $0.47. If history repeats itself,#Dogecoincould see another parabolic rally.
