Dogecoin Could See Important Rally

Dogecoin could see an important rally soon. Sentiment said that DOGE still possesses more upside potential even after it surged by more than 30%.

Analytics platform Santiment said that Dogecoin (DOGE) still possesses more upside potential even after surging by over 30% earlier this week.

Santiment’s director of marketing Brian Quinlivan said that Dogecoin’s market value to realized value (MVRV) over the past 30 days is below the “danger zone.” This means that the leading meme coin likely still has some upside potential.

As noted by the online publication the Daily Hodl notes the fact that MVRV is the ratio of the prevailing price and the average price – the higher it is, the higher the likelihood of the asset coming under selling pressure.

“As for average trading returns, we can see that the 30-day MVRV is sitting at +11%. Typically when altcoins hit +20% or more, this is a ‘danger zone’. Considering it didn’t quite get that high, even with the massive Elon-induced price surge, there could still be some extra cushion for prices to rise further.”

He also warned the fact that signs of the meme coin hitting a local top have emerged after the recent rally and this includes a spike in three metrics – Dogecoin’s active addresses and circulation, trading and transaction volumes as well as whale transactions.

“When these three metrics all spike together during a time when the asset is going on a decoupled surge independent from the rest of the markets, it’s a pretty solid bet that a local top is nearly always forming here, and profit taking yourself is a wise decision.”

Pseudonymous analyst Kaleo said that the $0.25 price is a “magnet” for Dogecoin.

The flagship meme coin, which is trading at $0.098 at time of writing, would need to appreciate by around 155% from current levels to hit Kaleo’s target.

“DOGE/Dogecoin

25 cents is a magnet.”