Dogecoin community interest is growing, as evidenced by the growth in active addresses reaching 764,840 over the past month. The market value to realized value (MVRV) ratio has improved, indicating that long-term holders are regaining confidence in DOGE’s price potential.
Dogecoin (DOGE) price continued its bullish rise for the third consecutive week and was able to maintain above its 200-day exponential moving average. As expected, this upward trend has sparked a lot of interest in the Dogecoin community. Moreover, market analysts predict that an uptrend for the dog-faced meme coin is imminent.
Dogecoin price mimics historical trends
Analysts have been comparing the current movement in DOGE prices with the patterns observed in 2020. This pattern is called a “reversal box” formation. Meanwhile, a top CEO of a cryptocurrency analysis company pointed out that memecoin has made three lows, even though it has already broken through important resistance levels.
Historically, “reversal box” patterns indicate the loss of price stagnation and can herald the beginning of a bull market. According to the CNF report, higher lows indicate less selling pressure and more market power among buyers.
Source:X
When Dogecoin produced the same type of reversal box in 2020, the coin witnessed some notable price spikes. Later that year, DOGE piled up impressive gains of over 1366%, from $0.0023 to $0.0048 and then from $0.006 to $0.088. These rallies set the stage for Dogecoin’s 2021 bull run, with Dogecoin achieving ATH.
In this current analysis, which happens to have a good view on the Dogecoin price, other important market indicators should be considered. For example, market sentiment and activity have been rising steadily over the last month, so they could be favorable for further upside. CNF reports that Dogecoin’s active addresses are slowly increasing, reaching a monthly level of 764,840, indicating growing engagement and demand for the token.
DOGE price indicator
Another metric to monitor is Memecoin’s MVRV (market value to realized value) long/short difference ratio. In the last month, this has increased from a low of -17.13 to -7.76. This change indicates that long-term holders are regaining confidence in Dogecoin’s future price prospects. If the market receives selling pressure from short-term holders, the setup could become positive for a price reversal.
Apart from the MVRV ratio, capital inflows from large holders have also increased throughout this week. The inflow of large holders increased by 358.64% from 252.92 million DOGE to 1.16 billion DOGE. This shows that institutional investors, and even whales, are putting more money into Dogecoin in hopes of a continued rise in price.
Provided by: Into the Block
Additionally, DOGE prices have recently recovered from a significant drop. At the time of writing, Dogecoin price is $0.139, up 2.06% in the past 24 hours. Moreover, DOGE also performed well last month, registering a growth of 27.60% according to the CNF report.
Dogecoin price seems poised for further upward impulse if favorable market conditions prevail in the near future. According to predictions by cryptocurrency analysts, DOGE price could soon reach $0.1658 if the bullish momentum continues.
