Recently, on-chain activity for Dogecoin has surged, indicating a growing positivity among investors towards the well-known dog-themed meme coin. Following months of price and blockchain activity stagnation, a sudden revival of interest appears to be emerging for DOGE price. As on-chain activity for Dogecoin surges following Bitcoin’s recovery toward $64K, there’s a solid room for the meme coin to regain its old momentum.
Dogecoin’s NVT Ratio Signals Undervaluation
In the past 24 hours, Dogecoin has experienced a decline, marked by a notable wave of long liquidations. According to Coinglass, the total liquidations for Dogecoin exceeded $1 million, with buyers accounting for the majority, approximately $800K of the liquidations.
The IntoTheBlock large holders netflow metric indicates a significant uptick in DOGE accumulation by major holders in the past 24 hours, surpassing recent daily averages.
Consequently, the netflow has surged from 7.4 million DOGE to 123.03 million DOGE. This increased activity may signal that major investors are gearing up for substantial acquisitions, normally seen in periods of market downturns. This trend follows past behaviors, where there is a tendency to increase purchases at lower prices.
Furthermore, the NVT ratio for Dogecoin indicates a potential bullish resurgence in its price. Recent data shows a decrease in the NVT ratio over the last few days, falling from a high of 130 to 66. This drop suggests an increase in transaction volume relative to Dogecoin’s market capitalization.
A low NVT suggests that Dogecoin’s market capitalization is low relative to its transaction volume. This can indicate that the cryptocurrency is undervalued or that it is seeing significant usage and transactions compared to its market price.
As transaction volume is increasing faster than the market capitalization, it flashes a bullish signal, indicating that Dogecoin is becoming more actively used or circulated.
What’s Next for the DOGE Price?
Dogecoin’s recent movements have formed a bullish pattern as buyers successfully pushed the price above immediate resistance channels. However, Dogecoin faced a rejection around the declining resistance level at $0.11. As of writing, DOGE price trades at $0.104., declining over 1.2% in the last 24 hours.
The price has surged above 23.6% Fib level and is holding well above the EMA20 trend line, aiming to meet bullish goals. The current level is crucial for the bulls to hold, as falling below it could lead to the retest of $0.09 support level.
As the RSI level now hovers above the midline at level 54, Dogecoin price might soon trigger a minor upward correction.
If the price continues to hold above the 20-day EMA, it could set the stage for a push above $0.11. Such a move might initiate a recovery toward $0.14 and potentially extend to $0.18.
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