Dogecoin Bulls Eyeing $1.30 as On-Chain Metrics Heat Up

Dogecoin is currently trading around $0.15, but various technical and on-chain indicators suggest a more robust market structure compared to the last bear market. Analysts are now speculating about potential upside, with a target of $1.30 in sight for Dogecoin.

Key Takeaways

Target Price: Dogecoin could aim for $1.30 based on various metrics.
Market Structure: Current indicators show healthier conditions compared to previous bear phases.
Activity Spike: A substantial rise in Dogecoin's active addresses signals growing interest in the asset.
Whale Accumulation: Large holders have bought significant amounts of Dogecoin recently.
Resistance Level: $0.20 is identified as a key resistance threshold.

Dogecoin price news

Dogecoin's Growth Potential

Currently hovering near $0.15, Dogecoin (DOGE) is attracting renewed attention from analysts, who are optimistic about the coin's potential to reach $1.30. Trader Cryptollica shared a long-term DOGE chart utilizing the Mayer Multiple, which indicates that Dogecoin is nowhere near the overheated levels seen during the market peaks of 2017 and 2021. The Mayer Multiple is presently at 0.66005, well below the 5 and above thresholds characteristic of boom periods.

Dogecoin Mayer Multiple | Source: X @Cryptollica

In addition, Cryptollica pointed out an Alphractal chart illustrating the “Number of Days Spent at a Loss” for DOGE holders. Historical cycles have shown long durations where holders faced unrealized losses, peaking at around 1,200 to 1,500 days. Currently, this metric has decreased, which indicates a lesser percentage of long-term holders facing significant losses, hinting at a potential reset phase reminiscent of previous bullish moves.

Dogecoin Number of Days Spent at a Loss | Source: X @Cryptollica

Robust On-Chain Data for DOGE

From a short-term perspective, on-chain analysts are noticing a significant rise in network activity for Dogecoin. Ali Martinez (@ali_charts) reported that the number of active addresses reached 71,589, marking the highest spike since September, according to data from Glassnode. The increase came when the DOGE price rose from around $0.14 to approximately $0.15, indicating growing market participation.

Dogecoin number of active addresses | Source: X @ali_charts

Martinez also analyzed whale activity, revealing that addresses holding between 1,000,000 and 100,000,000 DOGE acquired an impressive 480 million tokens in just 48 hours. Despite a decrease in holdings from mid-October to late November, the trend reversed as whale activity increased again, coinciding with a price recovery from $0.14 to $0.15.

Dogecoin whale activity | Source: X @ali_charts

Furthermore, a heatmap titled “DOGE: Cost Basis Distribution” indicates that $0.20 serves as a significant resistance level for Dogecoin. Around 11.72 billion DOGE were accumulated in this range, creating a defined barrier where many coins are approaching breakeven as the price approaches this level.

Dogecoin Cost Basis Distribution heatmap | Source: X @ali_charts

In summary, with favorable factors such as low valuations from the Mayer Multiple, reduced “days at a loss,” a notable increase in active addresses, substantial whale purchases, and a defined price resistance at $0.20, the on-chain outlook for Dogecoin is encouraging. The ability for the market to sustain these changes and absorb the large supply of DOGE around the $0.20 mark will be crucial in determining whether these higher price levels can be attained.

At the time of writing, Dogecoin (DOGE) is trading at $0.14451.

Dogecoin price
DOGE hovers above key support, 1-week chart | Source: DOGEUSDT on TradingView.com