Is Dogecoin Gearing Up for Another Bullish Run After the Last 33% Rise? Check This Out

Dogecoin experienced an explosive rise in price after Elon Musk changed Twitter’s logo to Dogecoin’s (DOGE) symbol. The cryptocurrency saw gains of up to 33%, causing it to decouple from other cryptocurrencies.

However, the inorganic price pump has since cooled off, with DOGE down 5.4% in the last 24 hours. Despite this, some are still wondering if there is potential for further price increases.

A recent report by Santiment suggests that there may not be much more room for additional price increases. The crypto analysis firm identified three metrics that spiked simultaneously, indicating that DOGE had reached a local peak and that large players were beginning to exit the market.

These metrics include the trading and transaction volumes, which were at their highest levels since November 2021. The second metric is the number of active addresses and circulation, while the third is the number of whale transactions valued at $100k or more.

These three metrics reached their highest levels in nearly five months, signaling that DOGE was decoupling from other crypto assets and suggesting that a local top was forming.

Is Dogecoin Gearing for Another Bull Run?

Santiment has noted that altcoins are considered to enter the “danger zone” when the 30-day MVRV (Market Value to Realized Value) metric goes above 20%. However, DOGE’s MVRV is currently only at 11%, indicating that there may still be some room for potential price growth.

In addition to analyzing the MVRV metric, the crypto analysis firm also took a closer look at Dogecoin holders, ranging from small to large whales. These holders were categorized as Fish (0-10 DOGE), Dolphins (10-10K DOGE), Sharks (10K-10M DOGE), and Whales (10M or More DOGE).

During Dogecoin’s price peak, small fish addresses exhibited aggressive movement, which is often a sign of a price peak. However, the dolphins and sharks did not participate significantly in the rally, with both losing ground in the past six weeks.

The whales showed some interest before Elon Musk changed the DOGE logo on Twitter, but after the price spike, they sold their holdings and booked a profit. The current resistance for DOGE is at $0.09649, with support at $0.07870. If the current resistance is broken, the cryptocurrency could face new resistance at $0.11160.

As of now, the current trading price of DOGE is $0.092470, indicating a decrease of 5.4% in the past 24 hours.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.