DOGE has gained 30.45% in the last month. Market fundamentals suggest investor favorability, with analysts focused on big pumps.
Over the past three weeks, Dogecoin (DOGE) has been trading above the 200 EMA, indicating a strong bullish trend.
This continued rise has sparked widespread discussion within the Dogecoin community, with analysts predicting a future upward trend.
general market sentiment
In his analysis, the CEO argued that DOGE’s price action reflects a 2020 “reversal box” pattern.
As a result, the meme coin formed three lows and broke through the major resistance levels.
Source: X
For context, when DOGE forms a reversal box pattern, it signals the end of stagnation and the beginning of a potential bull market.
Therefore, if higher lows form, it suggests that selling pressure is easing and buyers are starting to take control of the market.
When this pattern formed in 2020, Dogecoin had a strong rally. For example, in the second half of 2020, DOGE soared from $0.0023 to $0.00048. Memecoin also increased in price from $0.006 to $0.088, an increase of 1366.67% in the same year.
This surge set the stage for a major Dogecoin bull run into the 2021 ATH.
Therefore, if history repeats itself, meme coins will experience a big pump like in 2020.
DOGE price chart shows…
Although the analysis provided by CEO provided a promising outlook for Dogecoin, it is essential to countercheck other market fundamentals.
The question is whether current market conditions support the potential upside.
Source: Santiment
First, Dogecoin’s active addresses have seen sustained growth over the past month.
At the time of writing, DOGE’s active addresses were at a monthly high of 764.84k. This suggests that there was high participation and demand for meme coins.
Source: Santiment
Additionally, Dogecoin’s MVRV long/short differential ratio has increased from a low of -17.13 at the time of writing to -7.76 over the past month.
This suggests that long-term holders are confident in the future value of the meme coin. Therefore, when the market absorbs selling pressure from short-term holders, it can lead to higher prices.
Source: Into the Block
Finally, large holder inflows have shown a continued upward trend over the past week. This was an increase of 358.64% from the lowest figure of 252.92 million to 1.16 billion.
This increase in inflows suggests that investors are pumping more money into DOGE in hopes of further price increases.
What’s next for Dogecoin?
At the time of writing, DOGE was trading at $0.1396. It has fallen 3.5% in the past day.
However, Memecoin is on an upward trajectory, gaining 30.45% over the past month.
Realistic or not, the DOGE market cap in BTC terms is as follows:
Therefore, as observed through the market indicators mentioned above, Dogecoin is experiencing favorable market conditions that could push the memecoin further upwards.
Therefore, if these current market conditions hold, DOGE is well positioned to reach $0.1658 in the near term.
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