Dogecoin (DOGE) Could Rally Further After Massive Elon Musk-Induced Rally, Says Santiment – But There’s a Catch

Analytics platform Santiment is saying that Dogecoin (DOGE) nonetheless possesses extra upside potential even after surging by over 30% earlier this week.

Santiment’s director of promoting Brian Quinlivan says that Dogecoin’s market worth to realized worth (MVRV) over the previous 30 days is under the “hazard zone,” that means the main meme coin possible nonetheless has some upside potential.

MVRV is the ratio of the prevailing value and the common value – the upper it’s, the upper the probability of the asset coming below promoting stress.

“As for common buying and selling returns, we will see that the 30-day MVRV is sitting at +11%. Sometimes when altcoins hit +20% or extra, it is a ‘hazard zone’. Contemplating it didn’t fairly get that top, even with the huge Elon-induced value surge, there may nonetheless be some further cushion for costs to rise additional.”

Supply: Santiment

Quinlivan, nevertheless, warns that indicators of the meme coin hitting a neighborhood high have emerged after the current rally and this features a spike in three metrics – Dogecoin’s lively addresses and circulation, buying and selling and transaction volumes in addition to whale transactions.

“When these three metrics all spike collectively throughout a time when the asset is happening a decoupled surge impartial from the remainder of the markets, it’s a reasonably stable guess {that a} native high is sort of at all times forming right here, and revenue taking your self is a clever resolution.”

Santiment’s director of promoting additionally says that Dogecoin’s value motion after this week’s surge doesn’t encourage confidence.

“Taking a look at this chart, although, it’s exhausting to get too excited that we’re all of a sudden seeing a bit [of a] correlation break, with ‘decrease highs’ persistently being made even within the hours previous yesterday’s pump. ‘Increased highs’ could be a way more stable indication {that a} greater rally can be commencing quickly.”

Supply: Santiment

DOGE is buying and selling for $0.0858 at time of writing.

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