- Whale activity and historical trends pointed to the potential for a strong bullish breakout around $0.40
- Increasing network activity and solid metrics supported DOGE’s trajectory towards $0.50
Dogecoin [DOGE] has seen significant whale activity lately, with over 200 million tokens collected in just 48 hours. This surge in demand has reignited investor interest and optimism about DOGE’s potential for a breakout.
At the time of writing, DOGE was trading at $0.3854, up 1.61% over the past 24 hours. Moreover, whale accumulation is often an early indicator of strong price movements, increasing expectations for a bullish run in the coming days.
Bull run cycle – Will history repeat itself?
DOGE’s price history showed that the memecoin had a massive rally in January 2021 after a 56% correction. At the time of writing, Dogecoin appeared to be at the end of a 46% pullback, forming a similar pattern to the previous cycle.
As in 2021, historical data seems to indicate that these corrections often pave the way for new price increases, especially during bullish phases. Therefore, if the cycle repeats, Dogecoin could see a significant upward move as early as next week, with resistance levels at $0.40 and $0.50 becoming key milestones.
Source: X/Ali
DOGE Price Action – Where is it going?
Dogecoin’s price shows a classic cup-and-handle pattern: a reliable bullish formation. The breakout pushed DOGE towards the crucial resistance at $0.40, which if resolved could pave the way for a run towards $0.50.
However, if momentum slows, the price could return to the $0.30 support level, prompting buyers to intervene again. Therefore, the coming days will be crucial to determine whether DOGE can continue its upward trajectory or not.
Source: TradingView
Daily active addresses – Growing network activity
Dogecoin’s daily active addresses currently hover around 80,000 – a sign of increased user activity and network engagement. This increase is a positive sign of growing interest, as higher levels of activity often translate into better price stability.
Furthermore, continued growth in network participation could attract more investors, further strengthening Dogecoin’s bullish case. However, a drop in activity could dampen investor sentiment and slow momentum.
Source: Santiment
MVRV Ratio – What it means for DOGE holders
The MVRV ratio was 161.66%, indicating that holders are making significant unrealized gains. While this hints at potential profit taking, the accumulation of whales and increased activity could limit selling pressure.
Moreover, if DOGE maintains its momentum, the gains could provide incentive for long-term investing. Therefore, the MVRV ratio will be a crucial metric to watch out for in the coming days.
Source: Santiment
Is your portfolio green? Check out the Dogecoin profit calculator
Is DOGE ready for the next outbreak?
Dogecoin’s strong whale activity, bullish price patterns and increasing network engagement suggested that Dogecoin is well positioned for a breakout. If the USD 0.40 resistance is broken, DOGE could target USD 0.50 and above in the near term.
Will the meme coin finally produce a sustained rally? The coming weeks will reveal the answer.
Credit : ambcrypto.com
