Dogecoin (DOGE) joined the widespread bullish momentum that has been sweeping through the cryptocurrency market recently. In line with this trend, DOGE appeared to be mirroring a pattern reminiscent of a previous cycle, adding to the optimism surrounding the meme-inspired coin.
CoinMarketCap data indicated a robust performance for DOGE last week, with its price surging by more than 12%. The bullish sentiment continued as DOGE recorded a further 4% increase in the last 24 hours. As of the latest update, DOGE was trading at $0.1724, boasting a market capitalization exceeding $29.4 billion.
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A significant development in the DOGE market caught the attention of Mags, a renowned crypto trader and analyst, who shared insights via a tweet. According to Mags, the accumulation phase for Dogecoin has drawn to a close, signaling the potential onset of a substantial bull rally.
In fact, Mags suggested that this anticipated rally could propel DOGE's price to increase by a staggering sevenfold. Interestingly, this scenario bears resemblance to a past occurrence in DOGE's history.
Mags pointed out a similar pattern observed during DOGE's previous cycle in 2021, where the conclusion of the accumulation phase sparked a notable bull run, leading to a remarkable 170-fold increase in DOGE's price.
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Dogecoin Shows Strong Signs of Continued Growth
According to AMBCrypto's analysis, Dogecoin’s on-chain data further supports the possibility of a continued price increase. The analysis highlighted several key metrics indicating bullish activity. Whale activity around DOGE remained elevated throughout the last week, with an increase in whale transaction counts. Additionally, the Market Value to Realized Value (MVRV) ratio rose, indicating that more investors were in profit.
Source: Santiment
The velocity of DOGE also stayed high, showing that the cryptocurrency was being used more frequently in transactions within a given timeframe. After experiencing a sharp decline, Dogecoin’s weighted sentiment improved, suggesting an increase in bullish sentiment among investors. These factors collectively hint at the potential for further price gains for Dogecoin.
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However, there is a possibility that Dogecoin (DOGE) might experience a price correction soon. At the time of writing, DOGE’s fear and greed index stood at 64%, indicating that the market was in a "greed" phase. Historically, when this metric reaches such levels, it often suggests that bears might intervene, potentially driving the asset’s price down.
Source: AMBCrypto on TradingView
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Despite this, market indicators remained optimistic about the meme coin. The Chaikin Money Flow (CMF) showed upward momentum and was moving above the neutral mark, indicating buying pressure. Additionally, the Money Flow Index (MFI) was well above the neutral mark, further suggesting the potential for a price increase in the coming days.
See more: Cryptocurrency Prices and Market Cap
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