Dogecoin Eyes Massive Bull Surge As Metrics Turn Green
August 27 2024 - 10:30AM
NEWSBTC
DOGE, the widely recognized king of meme coins, is beginning to
exhibit signs of a potential resurgence in its bullish momentum
after enduring several weeks of bearish pressure. The
cryptocurrency has demonstrated an impressive recovery over the
past seven days, with its price surging by a significant 16.3%,
reaching a peak of $0.115. Related Reading: Crypto Liquidations
Cross $1 Billion As Bitcoin Crashes To $51,000 This upward movement
marks a notable shift in pace for DOGE, which had spent most of the
month either falling downward or consolidating. This recent price
recovery has renewed bullish momentum and aligns with a resurgence
in crucial on-chain metrics. These metrics, which include increased
trading volumes, increased outflow from exchanges, a rise in whale
transactions, and a rise in buy orders, collectively indicate that
the sentiment surrounding DOGE is again turning optimistic.
Dogecoin Metrics Turn Green Various Dogecoin on-chain metrics point
to DOGE undergoing a bullish rally as we enter a new week. Notably,
metrics from IntoTheBlock signal bullish, with two on-chain signals
and two exchange signals turning green. Regarding on-chain
signals, the “In The Money” metric has increased by 2.52%, while
the “Large Transaction” metric has increased by 1.65%, both bullish
for DOGE. The first on-chain metric indicates the return of
positive sentiment among holders, suggesting that many more holders
are now in profit. More often than not, this gives most of them a
reason to hold as the price rally unfolds. Regarding exchange
signals, the bullish sentiment is relayed through the “Bid-Ask
Volume Imbalance.” This metric recently turned green and has
reached 28.87%. This imbalance indicates that buy orders
significantly outweigh sell orders across various cryptocurrency
exchanges, suggesting strong demand for DOGE. When buy orders
dominate the market in this manner, it often leads to upward price
pressure, as sellers can command higher prices due to the increased
buying interest. The bullish momentum can be further relayed
through crypto exchange inflow/outflow data. Periods of negative
sentiment are characterized by a high inflow rate into exchanges,
which increases selling pressure. On the other hand, positive
sentiment is characterized by notable outflows from exchanges.
Going by this ideology, inflows into exchanges have witnessed a
drastic drop of -73.81% in the past 24 hours. Similarly, netflow
(inflow minus outflow) has reduced by 120.56 million DOGE tokens in
the same time frame, which suggests more withdrawals than deposits
into exchanges. Dogecoin Eyes Bull Run With metrics pointing
bullish and the wider market receiving inflows, the only place left
for DOGE to go is up. As the king of meme coins, a promising DOGE
price action is good for all meme cryptocurrencies. Related
Reading: Data Shows Sellers Have Returned To Bitcoin: Is A Major
Price Drop On The Horizon? At the time of writing, DOGE is trading
at $0.1088. Although it has reversed a bit since hitting $0.1147,
it seems to have established support around $0.108. Another move to
the upside from this support would undoubtedly trigger confidence
among many investors. Cover image from Dall-E, Chart from
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