Dogecoin (DOGE) Price Squeeze Looms as Stock-to-Flow Ratio Hits All-Time High

A potential supply squeeze appears to be looming for the popular meme coin, Dogecoin (DOGE), after a notable surge in its stock-to-flow ratio

Dogecoin (DOGE) price might be preparing for a massive surge as a potential supply squeeze looms on the horizon. A recent analysis reveals a surging stock-to-flow ratio for DOGE, indicating an upcoming scarcity in the meme coin's supply.

A closer look at Dogecoin's stock-to-flow ratio, a metric used to gauge a commodity's scarcity, reveals an all-time high of 69.25 between August 18 and 19. This indicator suggests an increasing scarcity of DOGE in the market, which, when combined with high demand, can lead to a supply squeeze. As demand outstrips supply, prices tend to surge.

Data from market intelligence platform IntoTheBlock also paints a bullish picture for DOGE. According to the platform, large transactions involving DOGE hit a seven-day peak of 7.37 billion DOGE on August 19. This activity suggests that whale investors, those holding large amounts of cryptocurrency, are actively accumulating DOGE.

The analysis of large holders' netflow over the past week also reveals a massive surge in holdings, with an increase of over 3,200%. This indicator suggests that these investors are bolstering their positions and moving their assets off exchanges, which could be an early sign of an accumulation phase.

Retail investors are also showing strong interest in DOGE, with the meme coin's transaction volume surging by 51% over the last 24 hours, reaching a total of $625.3 million, based on data from CoinMarketCap.

Crypto analyst Javon Marks has shared an optimistic outlook on Dogecoin's price trajectory, predicting a potential rapid surge of 513%, aiming for a price target of $0.6533. According to Marks, this price rally could be driven by bullish signals from Dogecoin's relative strength index (RSI), which is nearing a breakout point while diverging from current prices. These indicators, he adds, suggest a "major bull move" that could propel Dogecoin to new highs.

At the time of writing, Dogecoin is trading at around $0.1052, having climbed over 5% in the last 24 hours, as reported by CoinMarketCap.

This convergence of increasing demand from both retail and whale investors, coupled with favorable on-chain metrics, suggests that Dogecoin may be poised for a significant price surge, rendering it a closely watched asset in the cryptocurrency space.

The above is the detailed content of Dogecoin (DOGE) Price Squeeze Looms as Stock-to-Flow Ratio Hits All-Time High. For more information, please follow other related articles on the PHP Chinese website!