Recent weeks have witnessed an impressive surge in Dogecoin‘s (DOGE) value in the cryptocurrency market, with the meme-based coin breezing past a critical price threshold. The upward trajectory is anticipated to continue, riding on the back of several key indicators.
Dogecoin’s Rally: A Closer Look at On-Chain Data
Data from Santiment reveals that Dogecoin’s momentum is not without merit, as a spike in transaction activity suggests heightened investor engagement. The 48-hour transaction volume soared from 1.22 billion to an impressive 9.20 billion DOGE, a reflection of growing demand.
In tandem, the Coin Days Destroyed metric, which identifies the rejuvenation of long-dormant coins, also exhibited a sharp rise. This pattern typically preludes a shift in market behavior, often leading to price escalations.
Insights from MVRV and Whale Activity
While the 7-day and 30-day Market Value to Realized Value (MVRV) ratios are currently on a downtrend, this is interpreted as a potential buying opportunity. Despite lower MVRV values, a surge in large transactions signifies increasing interest from high-net-worth individuals, which could influence the market positively.
These signals are bolstered by technical analysis, which shows Dogecoin inching towards breaching the $0.181 weekly resistance level. Success in this endeavor could trigger a substantial 52% price increase to the next target of $0.279, potentially rewarding current holders and enticing new participants to the market.
