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.
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.
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 Tradingview
Source: NewsBTC