- Dogecoin’s price increased by more than 12% in the last seven days.
- Most market indicators and metrics looked bullish on the meme coin.
Like most cryptos, Dogecoin [DOGE] was also enjoying a comfortable bull rally. However, things could get even better, as the meme coin seemed to be mimicking a pattern that it followed in a previous cycle.
Dogecoin might repeat history
According to CoinMarketCap, DOGE bulls bucked up last week as the meme coin’s price surged by more than 12%. The bull rally was nowhere from stopping as DOGE’s price increased by over 4% in the last 24 hours.
At the time of writing, DOGE was trading at $0.1724 with a market capitalization of over $29.4 billion.
In the meantime, Mags, a popular crypto trader and analyst, posted a tweet highlighting an interesting development.
Per the analyst, the accumulation phase has ended for Dogecoin, which is the precursor to a massive bull rally. In fact, the possible bull rally might allow DOGE to increase its price by sevenfold.
Notably, this wasn’t the first time DOGE was acting like this. Mags’ tweet also pointed out a similar trend during DOGE’s last cycle in 2021.
During that time, the end of DOGE’s accumulation phase triggered a bull rally, causing DOGE’s price to increase 170 times.
Do metrics support a bull run?
AMBCrypto then analyzed Dogecoin’s on-chain data to see whether it also hinted at a continued price increase.
As per our analysis, Whale Activity around DOGE remained high throughout the last week as its whale transaction counts increased. Its MVRV ratio increased, hinting more investors were in profit.
Its Velocity also remained up, meaning that DOGE was being used more often in transactions within a set timeframe.
After a sharp decline, Dogecoin’s Weighted Sentiment improved, suggesting a rise in bullish sentiment.
Source: Santiment
However, there were chances of DOGE witnessing a price correction soon. At press time, DOGE’s fear and greed index had a value of 64%, meaning that the market was in a “greed” phase.
Whenever the metric reaches that level, it indicates that bears might step in and push an asset’s price down. Nonetheless, market indicators remained bullish on the meme coin.
Realistic or not, here’s DOGE’s market cap in BTC terms
For instance, the Chaikin Money Flow gained upward momentum and was headed above the neutral mark.
On top of that, the Money Flow Index (MFI) was also well above the neutral mark, hinting at a further price increase in the coming days.
Source: TradingView