Dogecoin (DOGE), the meme-inspired cryptocurrency, has been riding a recent bull wave, mirroring a pattern observed during its explosive 2021 run. This has sparked excitement among investors, with some analysts predicting a potential sevenfold price increase.
CoinMarketCap data reveals a strong week for DOGE, with its price surging over 12% and continuing its upward trajectory with a 4% increase in the last 24 hours. At the time of writing, DOGE sits comfortably at $0.1724, boasting a market capitalization exceeding $29.4 billion.
Analyst’s Tweet Ignites Bullish Speculation
Mags, a prominent crypto analyst, sent the DOGE community into a frenzy with a tweet highlighting a potentially bullish development. According to Mags, Dogecoin appears to be exiting its accumulation phase, historically a precursor to a significant price surge. This potential bull run could propel DOGE’s price a staggering seven times higher.
Deja Vu? Dogecoin Echoes 2021 Pattern
Intriguingly, this isn’t the first time DOGE has exhibited such behavior. Mags’ tweet draws a parallel to DOGE’s 2021 cycle, where the end of the accumulation phase ushered in a monumental bull run, inflating its price by a whopping 170 times.
An analysis of Dogecoin’s on-chain data reveals further support for the potential continuation of the price increase. Notably, whale activity surrounding DOGE remains high, with a rise in whale transaction counts. Additionally, an increase in the MVRV ratio suggests a growing number of investors are profiting from their DOGE holdings. The uptick in velocity indicates more frequent DOGE usage within a specific timeframe, suggesting increased adoption.
Also Read: Dogecoin (DOGE) or Shiba Inu (SHIB): Which Puppy-Themed Coin is Best Positioned to Fetch Returns?
Greed Lurks in the Shadows
Despite the bullish signals, a potential price correction for DOGE looms on the horizon. At the time of publication, DOGE’s fear and greed index sits at 64%, firmly in the “greed” territory. Historically, such levels have often preceded a market downturn as investors become overly optimistic.
However, other market indicators continue to paint a bullish picture for the meme coin. The Chaikin Money Flow (CMF) displays positive momentum and is trending towards exceeding the neutral mark, signifying an influx of buying pressure. Similarly, the Money Flow Index (MFI) also sits comfortably above the neutral zone, hinting at a potential price uptick in the coming days.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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