Dogecoin is once again rallying unexpectedly. Often, the coin manages to surprise the community with either the changes in price movements, news of supposed network updates, and/or tweets from the “DOGEfamily”, which has now been joined by the Mavericks’ “shark,” Mark Cuban.
So now, everyone is asking the same question, is DOGE going to break its ATH and rally ahead or will it crash. Here’s what the metric have to say.
DOGE to the moon?
Not exactly. Not even to its all-time high. Simply put, there’s a lot of reasons behind why DOGE just went up 99.4% in the last 3 weeks. Firstly, with the overall market recovering, a hike to a certain extant was a given. However, a single-day rise of 15.6% yesterday, is the result of the overly bullish DOGE lovers. It has been observed, that this altcoin mainly pumps when the market rallies and such is the case this time as well.
This brings us to where DOGE is headed.
In May, Dogecoin had nearly made it to $0.7, whereas, at the moment, its trajectory could stop before it even manages to cross $0.45. There are 2 reasons behind this. One, corrections are impending, even though this week has left most of the people clueless as to where the market is headed, some sort of correction is likely to arrive, breaking the rally.
Secondly, $0.45 has been a months-long resistance level, which DOGE tested and failed to establish as support. The last it was tested, was back on June 2. If this time it continues to go up, that is where it’ll halt. However, should it test $0.36 as support, there might be chances of a boost. But metrics tell us why even that won’t be successful.
Metrics not on DOGE’s side?
The figures at the moment are representative of the current market, which for DOGE is doing well. But these figures are only short-term and won’t sustain for long. Instances of the same can be observed by looking at the average transaction size which was as high as $232,372. This is proof of just how much money was moving around at the moment, at its high. And the same reason took MVRV up, all the way to 2.0.
Another reason why people are investing in DOGE right now is its correlation to Bitcoin which was around 0.8.
But the truth of the matter is that despite all this inflow, its developer activity and contribution, both continued to go down. It was as low as 2 developers most of the time. This is why DOGE does not have real value. But as long as influencers keep pushing it, it will keep going up… Until it doesn’t anymore.