DOGE, the well known king of meme coins, is starting to exhibit signs of a possible resurgence in its bullish momentum after enduring several weeks of bearish pressure. The cryptocurrency has demonstrated a powerful recovery over the past seven days, with its price surging by a major 16.3%, reaching a peak of $0.115.
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This upward movement marks a notable shift in pace for DOGE, which had spent a lot 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, an increase in whale transactions, and an increase in buy orders, collectively indicate that the sentiment surrounding DOGE is again turning optimistic.
DOGE’s price trends to the downside on the day by day chart. Source: DOGEUSDT on Tradingview
Dogecoin Metrics Turn Green
Various Dogecoin on-chain metrics point to DOGE undergoing a bullish rally as we enter a recent 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%, each bullish for DOGE. The primary on-chain metric indicates the return of positive sentiment amongst holders, suggesting that many more holders are actually in profit. Most of the time, this provides most of them a reason to carry as the worth 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 way, it often results in upward price pressure, as sellers can command higher prices because of the increased buying interest.
The bullish momentum may be further relayed through crypto exchange inflow/outflow data. Periods of negative sentiment are characterised by a high inflow rate into exchanges, which increases selling pressure. Then again, positive sentiment is characterised by notable outflows from exchanges.
Going by this ideology, inflows into exchanges have witnessed a drastic drop of -73.81% prior to now 24 hours. Similarly, netflow (inflow minus outflow) has reduced by 120.56 million DOGE tokens in the identical timeframe, which suggests more withdrawals than deposits into exchanges.
Dogecoin Eyes Bull Run
With metrics pointing bullish and the broader market receiving inflows, the one place left for DOGE to go is up. Because the king of meme coins, a promising DOGE price motion is nice for all meme cryptocurrencies.
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On the time of writing, DOGE is trading at $0.1088. Even though it has reversed a bit since hitting $0.1147, it seems to have established support around $0.108. One other move to the upside from this support would undoubtedly trigger confidence amongst many investors.
Cover image from Dall-E, Chart from Tradingview