The number of new investors in Dogecoin (DOGE) has increased significantly in recent days, suggesting the possibility that the price could rise as high as the previous increase from September 23 to December 12. During Meanwhile, DOGE price increased from 0.10 USD to 0.47 USD.
Could this investor surge become the impetus for a boom, or will Meme Coin Coin experience another decline?
Investors Strengthen New Dogecoin Positions Amid Historical Support
Between November and December, the total number of Dogecoin holders decreased from 7.14 million to 6.80 million. Interestingly, this decline occurred at the same time as DOGE’s momentum stalled, when the price dropped from $0.47 to $0.39.
The decrease in price along with the decrease in the number of Holders shows that profit-taking was strong at that time. However, on-chain data from Santiment, at this time, indicates that the situation has changed.
According to this analytics platform, the number of DOGE holders has skyrocketed to 6.68 million. This means that there are 60K new Holders who have actively added Meme Coin Coin to their wallets within the last 10 days.
An increase in the number of holders is often seen as a positive sign, showing that the cryptocurrency is attracting retail investment. Furthermore, this also comes as crypto whales continue to play an important role in guiding the coin. If this trend continues, DOGE price could be poised to surpass $0.42.
The Market Value to Real Value ratio displays this argument. MVRV measures the ratio between a coin’s current price and the average price at which it was purchased. This index also evaluates whether an asset is overvalued or undervalued.
An extremely high MVRV ratio points to increased unrealized profits, suggesting the cryptocurrency may be nearing a high valuation. Conversely, a low MVRV ratio indicates the asset is undervalued, which can present a buying opportunity.
At this time, Dogecoin’s 30-day MVRV rate reversed from negative territory to 0.69%. The last time there was such a reversal, the price jumped from $0.10 to $0.47, as mentioned before. Therefore, if history repeats the current pattern, DOGE could experience a strong price increase.
DOGE Price Forecast: Target of 1 USD remains intact
Technically, the daily DOGE/USD chart shows the formation of a “bull flag” pattern. A “bull flag” is a pattern characterized by two price increases separated by a short correction period.
As seen below, the pattern begins with a sharp, almost vertical price increase known as a flagpole, fueled by strong buying that takes sellers by surprise. This was followed by a retracement that formed the “flag,” represented by parallel upper and lower resistance levels.
During the retracement phase, the initial price rally slows due to profit taking, and the price corrects within a narrow range, creating lower highs and lower lows. Meanwhile, it appears that Dogecoin price is on track to continue its upward trend with a possible explosion ahead.
Once confirmed, DOGE price could increase to $0.60 USD. In a very optimistic scenario, the value of Meme Coin Coin could reach 1 USD.
However, if the price falls below the lower resistance of this flag, the prediction may be invalidated. A decrease in the number of new Dogecoin holders could also cause a price drop. Then, DOGE could drop to $0.33.
