Dogecoin Sees 60,000 New Holders in 10 Days: DOGE Parabolic Run Ahead?

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As a seasoned analyst with over two decades of experience in the financial markets, I have seen my fair share of market cycles and trends. The recent surge in Dogecoin (DOGE) holders is indeed reminiscent of the meme coin’s historic rally between September 23 and December 12 last year. However, history doesn’t always repeat itself, but it often rhymes.

In the past few days, there’s been an uptick in new investors for Dogecoin (DOGE), hinting at a possible price spike reminiscent of its earlier surge from September 23 to December 12. During that timeframe, DOGE’s value skyrocketed from $0.10 to $0.47.

Is it possible that this recent surge in owners could trigger an upward trend, or is it likely that the meme coin will instead see another decline?

Investors Take New Dogecoin Positions Amid Historical Support

From November 22nd up until December, the count of Dogecoin holders decreased from approximately 7.14 million to 6.80 million. It’s worth noting that this decrease coincided with a slowing down in DOGE’s price surge, as the value dipped from $0.47 to $0.39.

The reduction in price and a decline in the number of holders indicates a substantial selling off during that period. Interestingly, recent data from Santiment reveals a shift in circumstances as we speak.

As a researcher examining the data, I’ve noticed an exciting surge in the number of Dogecoin (DOGE) holders. In just the last ten days, approximately 60,000 new holders have actively decided to incorporate the meme coin into their digital wallets. This growth has propelled the total count of DOGE holders to a staggering 6.68 million.

An increase in the number of holders typically signals a positive outlook, suggesting that more retail investors are becoming interested in the cryptocurrency. At present, large crypto investors, or “whales,” are also significantly influencing the coin’s direction. If this trend persists, it’s possible that the value of DOGE could rise above $0.42.

The Market Value to Realized Value (MVRV) ratio supports this thesis. The MVRV measures the ratio between a coin’s current price and the average price at which it was acquired. The metric also assesses whether an asset is overvalued or undervalued. 

A significantly large MVRM (Market Value to Realized Value) ratio implies a growing amount of unrealized gains in cryptocurrency, which might suggest it’s approaching an overpriced phase. On the flip side, a smaller MVRM ratio could mean the asset is underestimated, possibly signaling a good chance to invest.

Currently, Dogecoin’s 30-day MVRV ratio has moved out of negative figures and stands at 0.69%. Previously, a similar shift in this ratio led to a significant price surge from $0.10 to $0.47. If the past patterns repeat, Dogecoin could potentially witness another dramatic increase, or what’s often referred to as a parabolic rally.

DOGE Price Prediction: $1 Target Still in Place

In simpler terms, the daily Dogecoin (DOGE) to US Dollar (USD) graph suggests the appearance of a ‘bull flag’. This term refers to a chart pattern that emerges from two upward surges followed by a short phase of sideways movement or consolidation.

Initially, you’ll notice an upward surge in price, resembling a tall flagpole, due to intense buying activity that takes the sellers unaware. This rapid increase is often referred to as the “flagpole.” Subsequently, a retracement occurs, forming what appears like a horizontal ‘flag’, where two trendlines – one upper and one lower – run parallel to each other.

During a pullback, the early surge in prices slows as investors cash out their profits, causing the value to stabilize within a narrow band. This band often results in slightly lower peak prices (higher highs) and trough prices (lower lows). At present, it appears that Dogecoin’s price is on the brink of resuming its upward trajectory, possibly leading to a breakout soon.

If Dogecoin gets verified, its value could potentially reach $0.60. In a very pessimistic outlook, the meme currency’s worth might approach the $1 level.

If the price falls beneath the lower boundary of the flag pattern, there’s a possibility that our prediction may not hold true. A reduction in the number of new Dogecoin investors might also lead to a price drop, potentially causing the value to plummet to around $0.33.

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2024-12-13 04:42