Cryptocurrency prices have rebounded, with the largest memecoins by market capitalization—Dogecoin, Shiba Inu, and Pepe—posting double-digit gains over the past week. This recovery was sparked by Bitcoin’s “Uptober” rally above $68K, driving increased buying demand. Notably, Dogecoin’s recent surge has attracted whale investors, pushing the price past key resistance levels. With multiple on-chain metrics turning bullish, analysts are forecasting a potential 50% increase in DOGE’s price.
Dogecoin Joins the Uptober Rally
Dogecoin, the popular meme cryptocurrency, has been making headlines for days, not only due to its strong price performance but also because of its surging on-chain metrics.
Data from IntoTheBlock reveals that net inflows into wallets holding at least 0.1% of the total Dogecoin supply have surged by an impressive 900% in the past 24 hours. This brings the net accumulation by whales to 527.3 million DOGE, valued at approximately $63 million.
Further gains for Dogecoin’s price are anticipated, as this rally appears to be more sustained. According to CoinGlass data, Dogecoin’s 24-hour trading volume has surged by 85%, reaching an impressive $4.6 billion. Notably, DOGE’s daily volume had been hovering around $1 billion in recent weeks and months. This nearly $3.6 billion increase indicates a significant rush of investors toward the meme coin.
Also read: Bitcoin Breaks Long Channel Pattern, Eyes on $72,000
Alongside the surge in trading activity, Open Interest (OI) has also jumped by 35.53%, reaching approximately $994 million. This rising OI is a bullish indicator, reflecting a significant increase in the number of open positions for Dogecoin. The increased activity suggests that a Dogecoin rally may be on the horizon.
However, the rising MVRV ratio could lead to liquidations. Dogecoin’s MVRV ratio has climbed in recent days, currently standing at 1.27, indicating that the market value is outpacing the last realized value. This suggests that selling Dogecoin is now profitable for holders, which might lure them to liquidate their positions near a local peak, potentially triggering a significant pullback.
What’s Next for DOGE Price?
Dogecoin broke above the symmetrical triangle pattern, signaling that the bulls have gained the upper hand over the bears. The price is surging above crucial resistance channels and recently formed a high near $0.14. However, bears strongly defended that level, resulting in a minor correction. As of writing, DOGE price is trading at $0.137, surging over 5.8% in the last 24 hours.
If the price sustains above the EMA20 trend line, the DOGE/USDT pair could rally to $0.17, with the potential to reach the crucial level of $0.19.
However, if the price reverses and drops back below EMA20, it would indicate a failed breakout. In this case, the pair may decline to $0.115, a critical near-term support level. A bounce off the 20-day EMA would suggest that the bulls are preparing to resume the upward movement.
