Dogecoin (DOGE) Price Prediction: Will the Meme Coin Finally Exit the Bear Market?

Between August 18 and 19, Dogecoin (DOGE) saw an astonishing spike in its stock-to-flow ratio. This sudden increase marks a notable shift for the meme coin

Dogecoin (DOGE) price seems to be preparing for a massive rally as several on-chain metrics indicate bullishness.

Key Takeaways

DOGE’s stock-to-flow ratio hit an all-time high of 69.25.

Both active and new addresses on the Dogecoin network have risen.

Technical analysis using the Global In/Out of Money indicator suggests potential resistance at $0.12 and support at $0.088.

Dogecoin price analysis reveals a potential breakout in the cards.

After struggling to produce gains for several months, Dogecoin (DOGE) price could be preparing for a major rally. Several on-chain metrics indicate bullishness for the meme coin.

Dogecoin Stock-to-Flow Ratio Hits All-Time High

The stock-to-flow ratio is a model in the market that measures the scarcity of a cryptocurrency. For instance, if the ratio drops, it means that there is high inflation around the coin, and the price risks dropping.

But in the case of Dogecoin, the ratio has surged to 69.25 — an all-time high for the metric. This unusual spike is a positive signal for DOGE’s price, as it hints at a supply squeeze for the cryptocurrency.

In crypto, a supply squeeze occurs when demand for a coin increases during a scarcity period. Therefore, based on the laws tied to the metric, the DOGE price may encounter a notable rally in the coming weeks.

Dogecoin Active, New Addresses Rise

Both active and new addresses on the Dogecoin network have risen since last week.

Active addresses reflect the number of users completing transactions, indicating increased blockchain usage and a bullish outlook. A decline would signal a bearish trend.

New addresses, on the other hand, track participants making their first transaction. Growth suggests rising adoption and demand, while a drop would indicate waning interest.

Hence, the jump in the active and new addresses on DOGE reinforces the forecast that the coin price may soon exit the long-standing bearish trend.

Dogecoin Price Analysis: Technical Outlook

To analyze Dogecoin’s next move, BeInCrypto examines the Global In/Out of Money (GIOM) indicator. This tool shows whether addresses are in profit, at a loss, or breaking even based on their acquisition cost versus the current price.

Addresses with a higher cost basis than the current price are out of the money, while those with a lower cost basis are in the money. The GIOM helps identify key support and resistance levels; more addresses in profit create support, while those at a loss contribute to resistance.

Currently, over 1 million addresses purchased 11 billion DOGE at a maximum price of $0.098.

This figure is higher than the number that accumulated between $0.12 and $0.15. Therefore, if buying pressure increases, DOGE may break above the resistance around these points.

If successful, the price may climb to $0.15, representing an approximately 50% increase.

However, failing to clear this resistance or facing rejection could invalidate the bullish outlook. In such a scenario, DOGE’s price might drop to $0.088, indicating potential downside if momentum shifts.

The above is the detailed content of Dogecoin (DOGE) Price Prediction: Will the Meme Coin Finally Exit the Bear Market?. For more information, please follow other related articles on the PHP Chinese website!