Is Dogecoin’s latest 40% ‘hike’ the first sign towards recovery?
Dogecoin might or might not recover ahead of the FOMC meeting, but its recovery depends on a few things.
- Dogecoin’s large transactions spiked into the weekend.
- Other key metrics remained bearish, and this could keep DOGE’s price range-bound
According to IntoTheBlock’s data, Dogecoin [DOGE] whale transactions soared by 41% over the last 24 hours. In most cases, positive large transactions imply an accumulation trend. This could, in turn, trigger a price reversal on the charts.
Additionally, the blockchain analytics firm revealed that active daily addresses jumped by 34%.
Taken together, these findings hinted at the market interest and traction associated with the memecoin. Hence, AMBCrypto checked the overall DOGE market sentiment to confirm a potential bullish reversal.
DOGE’s mixed signals
According to Santiment, the social volume rose between 13 and 21 January. Afterwards, it retreated into the weekend, indicating a slight decline in memecoin traction across all socials.
The overall weighted sentiment was also negative, underlining how cautious speculators have been ahead of the FOMC meeting on Friday, 31 January.
These bearish readings seemed to be contrary to IntoTheBlock’s suggested whale transactions. The mixed signals implied DOGE could stay range-bound, until the Fed rate decision.
That being said, the 30-day MVRV fell back into negative territory, meaning the memecoin was relatively undervalued and ripe for scooping for the next potential reversal. Besides, nearly 85% of top Binance traders were net long on the memecoin, further supplementing the massive expectations of a price recovery.
However, a better discount could be feasible at the demand zone above $0.32 (cyan). Since late December, DOGE has been swinging between $0.32 and $0.40.
With the CMF (capital inflows) sliding below the neutral level, a retest of the range-low could be likely soon.
Another factor worth noting is the DOGE ETF speculation, with Bitwise the latest potential issuer to file an application.
Some analysts like Ali Martinez have predicted that approval could push DOGE to $15. However, the market is currently 50/50 on the ETF being greenlighted by the SEC.
