Posted:
- More than 70% of Dogecoin holders were in profit.
- A few metrics and market indicators were bearish on DOGE.
Dogecoin [DOGE], like most cryptos, has had a comfortable bull rally over the past few weeks. However, if the latest data is to be considered, things can get even better for the world’s largest meme coin.
Is Dogecoin on the verge of a breakout?
CoinMarketCap’s data revealed that DOGE’s price rallied by more than 24% over the past 30 days, allowing it to reclaim a substantial amount of its lost market capitalization. Thanks to the uptrend, there were four consecutive bullish weekly candles.
Moreover, recent data from IntoTheBlock highlighted the possibility of another DOGE bull rally. Notably, a potential breakout above the $0.079 high could be anticipated. This could lead to another 30% increase in price, helping DOGE reach approximately $0.1.
DOGE investors, in fact, were also earning profits. Data analyzed from AMBCrypto found that, at press time, over 71% of the addresses were in a state of profit.
Another key metric was the Network Value to Transaction (NVT) ratio. The NVT ratio is a metric that is used to understand whether an asset is overvalued or undervalued.
DOGE’s NVT ratio was low, indicating a high network transaction value compared to market capitalization. Such episodes are often considered to be bullish signals, increasing the chances of DOGE going above $0.79.
The ground reality is a bit different
Though the aforementioned datasets looked bullish, things were more complex than they appeared. Over the last 24 hours, DOGE’s price has dropped by nearly 2%. At the time of writing, Dogecoin was trading at $0.07394 with a market cap of over $10.4 billion.
AMBCrypto’s analysis of LunarCrush’s data revealed that the meme coin’s popularity had dropped last week as its Social Dominance plummeted by 61%. Another bearish metric was DOGE’s AltRank, which increased by triple digits in the recent past.
Source: LunarCrush
The meme coin’s Price Volatility 1w also dropped, which decreased the chances of an unprecedented rally. Nonetheless, whale activity around the coin remained high last week.
DOGE also managed to be in demand in the derivatives market, as evident by its green Binance Funding Rate.
Source: Santiment
AMBCrypto then checked DOGE’s daily chart to get a better understanding of whether DOGE could cross the $0.79 mark anytime soon. Our analysis found that DOGE’s MACD displayed a bearish crossover.
Realistic or not, here’s DOGE market cap in BTC‘s terms
Though the Chaikin Money Flow (CMF) was above the neutral mark, it did register a downtick.
Additionally, Dogecoin’s Bollinger Bands suggested that the meme coin’s price was entering a slightly less volatile zone, minimizing the chances of a sudden northbound price movement.
Source TradingView