DOGE Records Demand Increase
Last week, the meme token market saw activity rise, which resulted in a price rally for Dogecoin. At publishing time, the leading meme coin was changing hands at $0.12.
In the last seven days, the price has recorded an increase of 6%. There has also been an increase in the number of new DOGE addresses created and daily addresses making DOGE transactions.
Growth in Network Activity
The last week has seen an increased demand for DOGE amongst traders. There has been a 20% increase in the number of addresses making DOGE transactions on a daily basis.
There has also been a rise in new demand for Dogecoin. In the same week, there has been a 17% uptick in the daily number of new DOGE addresses created.
A rise in new and daily active addresses is considered an indication of more traders trading the token.
A rise in market activity is considered a sign of positive market sentiment and also of potential growth in the future.
Last week, the growth in demand for DOGE may be due to a buying opportunity that rose because of the month-long decline in the price of the token.
In the last 30 days, the price of the largest meme token in terms of market cap has recorded a fall of 20%.
Buying opportunity
The Market Value to Realized Value (MVRV) ratio of DOGE confirmed that it is a good time to purchase the meme coin.
This metric measures the ratio between the token’s current price and the average price of all tokens in the market supply.
A positive value indicates that its current price is higher than what investors paid for it, which means the token is overvalued. Likewise, a negative MVRV ratio means a token is undervalued.
The MVRV ratio of Dogecoin has been negative in the last 30 days and 365 days. This means that the price is trading lower than its average price for all tokens in circulation.
Price prediction
Due to the recent rally recorded, the price of Dogecoin has climbed to its 20-day exponential moving average (EMA).
The daily chart of DOGE shows that its price could surpass this critical moving average. This is considered a sign of a bullish trend.
This means that the price of the asset could rise higher than the average price recorded in the last 20 days.
It shows that market participants are taking increased buying interest and this is considered a sign of future gains.
A continuation of this trend would see the price of DOGE rise to $0.13. However, if it does not, then the price of the meme token could drop to $0.12.
