If Dogecoin can break through the $0.1756 mark again, it may test last year's high of $0.2288.
Current key technical indicators and on-chain data suggest that DOGE may experience a pullback as investors begin to take profits.
Moreover, DOGE's MVRV indicator has returned to levels seen in May, which could trigger the meme coin season.
Over the past three days, Dogecoin has shown significant upward momentum, rising over 8% on Tuesday. If this upward trend continues, this most popular meme coin may set a new annual high in the coming days.
Dogecoin needs to first reclaim $0.1756 to have a chance to challenge the new annual high.
Currently, DOGE is trying to stabilize above the resistance level of $0.1756. After a rapid rise of nearly 15%, this top meme token has entered a critical rectangular range. However, due to significant selling pressure, the price is facing resistance around this level.
Since the rebound from the 100-day simple moving average (SMA) last Saturday, Dogecoin has risen by 33%. If the buying momentum continues to strengthen and DOGE can hold above $0.1756, it is expected to break the annual high of $0.2288.
However, the relative strength index (RSI) has entered the overbought territory, which may indicate a potential price correction.
Additionally, DOGE's on-chain indicators also suggest that a correction may occur.
According to IntoTheBlock's global inflow and outflow data, a price adjustment seems likely. The data shows that over 92% of the total DOGE supply is currently in profit. When the majority of a token's supply is profitable, investors may choose to take profits, which could exert some selling pressure on the price.
Additionally, DOGE's market value to realized value (MVRV) ratio has reached a five-month high of 77%. This means that the average return on investment for all DOGE holders is 81%. Such a high MVRV typically indicates that a price adjustment may be forthcoming.
As DOGE's MVRV is currently at levels seen during the meme coin season (lasting until May), investors are anticipating a new wave of meme coin excitement.
According to CoinGecko, other top meme coins like Shiba Inu (SHIB), PEPE, and dogwifhat (WIF) have also seen significant increases, with the entire meme category up over 11%.
