- Dogecoin might be headed for another rally in the next few weeks if it conforms to historic patterns.
- DOGE demand gains traction as the markets shift into recovery mode.
The recent crypto crash had Dogecoin [DOGE] almost achieve a new 12-month high. The cryptocurrency achieved some recovery and might just be at the beginning of its next bullish wave and here’s why.
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Some months offer historical significance as far as crypto prices are concerned and June might be one of those months. For perspective, Dogecoin traded at $0.10 at the start of April and fell as low as $0.053 on 10 June. It embarked on a path to recovery since then. Its $0.065 press time price represented a 22% rally from its monthly low.
Source: TradingView
At first glance, DOGE’s recent price action looked like a mundane recovery after a crash. However, an analysis of Dogecoin’s historic price action every June for the last three years revealed something interesting.
DOGE delivered a bearish performance in June and the weeks prior, but commenced a strong rally at the tail end of June. This has been the case since 2020.
Is Dogecoin setting up for an old trick?
Judging by its historic performance, Dogecoin might be headed for yet another rally. It already delivered a bearish performance in the last few weeks and has already embarked on a recovery.
On-chain data also supported the bullish expectations. For example,Dogecoin’s mean coin age, at press time, was at its highest level in the last three months. This was a confirmation that most DOGE holders were still accumulating with a long-term focus.
Source: Santiment
Furthermore, on-chain volumes also took off in the last two days in line with the prevailing bullish sentiment and demand. DOGE’s MVRV ratio has been on a healthy run-up since mid-June. This was an indication that most of the investors that bought since then were in profit.
Source: Santiment
Dogecoin’s realized cap metric has been on a downward trajectory in the last three months. This was despite the fact that more traders have been buying especially after mid-June. This may explain why most of those buyers, especially with more recent purchases.
Read about Dogecoin’s price prediction for 2023/2024
The above analysis confirmed that demand for Dogecoin was on the rise. It may perhaps pull off yet another end-of-June rally that may extend well into July if history repeats itself. While that is a real possibility, it was also worth noting that the market may not necessarily conform to past trends.
Dogecoin traders should thus consider proceeding cautiously.
