- Whale activity and historical trends pointed to potential for a strong bullish breakout near $0.40
- Rising network activity and solid metrics supported DOGE’s trajectory towards $0.50
Recently, there’s been considerable whale activity in Dogecoin [DOGE], resulting in more than 200 million tokens being amassed within a span of 48 hours. This sudden increase in demand has sparked renewed curiosity and optimism among investors regarding the possibility of DOGE experiencing a breakthrough.
Currently, Dogecoin (DOGE) is being exchanged at $0.3854, marking a 1.61% increase compared to the past 24 hours. Moreover, increased whale activity may foreshadow robust price fluctuations, stirring optimism for a potential bullish trend in the near future.
Bull run cycle – Will history repeat itself?
In simple terms, Dogecoin’s price history shows that it experienced a significant surge in January 2021 following a correction of around 56%. Currently, it appears that Dogecoin is wrapping up a drop of approximately 46%, mirroring a pattern similar to its past cycles.
In 2021, we saw that price corrections usually set the stage for further price increases, particularly during bullish markets. If this pattern persists, Dogecoin might experience a substantial upward trend as soon as next week. Key milestones in this potential rise could be the resistance levels at $0.40 and $0.50.
DOGE price action – Where is it heading?
Dogecoin’s price is showing a well-known uptrend pattern called a “cup-and-handle.” This pattern often signals a bullish movement. The breakout of this pattern has propelled Dogecoin closer to a significant resistance level at around $0.40. If this resistance is overcome, it might pave the way for a potential increase towards $0.50.
If the rate of increase weakens, there’s a possibility that the Dogecoin price could fall back towards the $0.30 support point, offering potential buyers an opportunity to enter the market. Consequently, the coming days will play a crucial role in deciding whether Dogecoin can maintain its uptrend or not.
Daily active addresses – Growing network activity
80,000 active Dogecoin addresses per day suggest an uptick in user interaction and network participation. This surge indicates a rising curiosity, as increased activity usually contributes to more stable prices over time.
Furthermore, continuous expansion in user engagement on the network may draw in additional investors, bolstering the argument for Dogecoin’s positive outlook. On the other hand, decreased activity could potentially weaken investor confidence and slow its progress.
MVRV ratio – What it means for DOGE holders
The Multiple of Realized Value (MVRV) ratio stands at 161.66%, suggesting that investors currently hold significant untapped profits. This could imply an upcoming wave of profit-taking; however, it’s also possible that whale accumulation and heightened activity might curb the selling pressure.
Furthermore, if DOGE continues its upward trend, the potential earnings might encourage long-term investment. Consequently, keeping an eye on the MVRV (Maker’s Value to Realized Value) ratio could prove vital in the upcoming period.
Is DOGE ready for the next breakout?
The high level of whale involvement, optimistic pricing trends, and increasing network interaction indicate that Dogecoin may be poised for a significant surge. If it manages to surpass the resistance at around $0.40, Dogecoin could potentially reach $0.50 and even higher levels in the immediate future.
Will the meme coin finally deliver a sustained rally? The next few weeks will reveal the answer.
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2025-01-18 03:03