The number of new investors in Dogecoin (large Dog) has significantly increased in recent days. This development raises the possibility that this popular meme coin may experience a price rebound similar to the rise it experienced between September 23 and December 12. During that time, the price of large Dog rose from $0.10 to $0.47.
The number of large Dogecoin investors is increasing every day.
From November 22 to December, the total number of Dogecoin investors decreased from 7.14 million to 6.80 million. This decrease coincided with a slowdown in the rise of large Dogecoin holders and a drop in price from $0.47 to $0.39. The reduction in price and investor count suggests that investors realized their profits during this period. However, according to on-chain data from Santiment, this situation is beginning to change.
Data platforms report that the number of large Dogecoin investors has reached 6.68 million. According to this data, in the past 10 days, 60,000 new investors have added Dogecoin to their wallets. This increase in new investors is generally considered a positive signal, indicating that this cryptocurrency is gaining popularity among retail investors.
This growth is also occurring while cryptocurrency whales continue to influence Dogecoin. If this trend continues, the price may rise above $0.42.
The MVRV ratio supports the upward trend.
The bullish trend of Dogecoin is supported by the Market Value/Realized Value (MVRV) ratio. The MVRV ratio measures the ratio between the asset's current price and its average purchase price, analyzing whether the asset is overvalued or undervalued. A high MVRV ratio may indicate that the asset is overvalued. On the other hand, a low MVRV ratio suggests that the asset is undervalued and provides a buying opportunity.
The 30-day MVRV ratio of Dogecoin has risen from the negative zone to 0.69%. The last time such a reversal occurred, the price rose from $0.10 to $0.47. If history repeats itself, Dogecoin may experience another parabolic rise.
