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- Dogecoin (DOGE) holders significantly increased by 60,000 to reach 6.68 million in just 10 days as investors anticipate an upcoming rally.
- Ali Martinez predicts that DOGE could hit $3 once it successfully mimics the price moves in 2017 and 2021; however, it could hit $18 if the price goes wild.
Dogecoin’s (DOGE) recent breakout attempt was rejected by bears as the asset declined by 1.9% in the last 24 hours and 5.58% in the last seven days.
However, on-chain data shows a bullish outlook, as the number of DOGE holders has increased significantly to 6.68 million. According to the data, about 60,000 new holders have added the meme coin to their wallets in the past 10 days.
This is quite interesting, as DOGE holders declined from 7.14 million to 6.80 million between November 23 and December 1. Fascinatingly, the price fell from $0.47 to $0.39 during this period. According to our analysts, the considerable decline in total holders at that time suggested a profit-taking action. However, the current data suggests that things have changed.
Whales Accumulate DOGE
Amid this backdrop, whales have also been aggressively accumulating the asset, purchasing more than 200 million coins to reach a cumulative total of 10.59 billion tokens. Meanwhile, the balance of addresses holding between 1 million and 10 million DOGE declined to 10.39 billion on November 23.
Currently, DOGE is trading at $0.40. However, a crucial resistance level is found at $0.42, as $84 million worth of purchases were recorded at that level.
Analyzing market indicators, we discovered that the Market Value-to-Realized Value (MVRV) supports the bullish thesis, as it reversed to 0.69% in the 30-day reading. According to our analysts, MVRV determines the ratio between an asset’s current price and its average purchasing price. Using this indicator, one can also determine whether a coin is overvalued or undervalued. A rising MVRV implies that the Unrealized Profit is increasing. However, a low MVRV presents a buying opportunity and shows that the asset is undervalued.
The last time DOGE had its MVRV reversed to the negative territory, the price skyrocketed from $0.10 to $0.47.
In addition, the meme coin’s daily chart shows the formation of a bull flag. According to analysts, this pattern is usually marked by two rallies separated by consolidation phases.
Technical Analysis by Analyst
Analyzing a bullish thesis presented by crypto analyst Ali Martinez, we discovered that DOGE is repeating a 2017 and 2021 market movement by trading in a large ascending channel. According to him, DOGE could hit $3 and even touch the $18 mark if it goes wild. Fascinatingly, this aligns with our recent report that the asset could hit $3 within the cycle.
Check out where we are in the Dogecoin DOGE bull cycle! Very early, right? For that reason, I’m thankful for the dip and will buy more between $0.40-$0.30. The target remains $3, and if things go wild, $18!
Martinez initially made this prediction in November when he boldly estimated that DOGE could record a 4,500% surge. At that time, he explained that this prediction would be materialized through tests of the middle or upper boundary of the channel.
Testing the middle of the channel would position the asset at $2.4. According to him, the top of the asset could be within the 1.618 and 2.272 Fibonacci levels, which represents $3.95 and $23.26.
