Elon Musk's change of Twitter's logo to that of Dogecoin (DOGE) caused the price to skyrocket. DOGE earns up to 33%, decoupling from other cryptocurrencies. However, inorganic pumps have begun to cool down. DOGE is currently down 5.4% in the last 24 hours. However, is there room for further price increases?
According to a report by Santiment, there are plenty of signs that the local area has peaked and large companies are withdrawing. The cryptocurrency analyst firm pointed to three indicators soaring together, indicating DOGE decoupling. The first is the volume and volume, which are the highest since November last year. The second is active addresses and circulation, and the third is whale trading ($100k+).
All three indicators reached their highest levels in nearly 5 months. As Dogecoin (DOGE) decouples from other crypto assets, there are signs that local tops will form.
Can the Dogecoin price rise further?
According to Santiment, when the 30-day MVRV exceeds 20%, the altcoin enters the "danger zone." However, for DOGE, this metric is only 11%. Therefore, there is still some room for manoeuvre in potential price increases.
The cryptocurrency analytics firm also analyzed Dogecoin's holders, from small whales to big whales. Holders are divided into fish (0-10 DOGE), dolphins (10-10K DOGE), sharks (10K-10M, DOGE), and whales (10M or more DOGE).
Just when the price peaked, the smallest fishing address (blue line) moved significantly. This is a common phenomenon and one of the signs that the price has peaked.
The dolphins (yellow line) don't really show any signs of participating in the rally, and they've been falling, similar to the last six weeks. The shark (orange line) behaves similarly to the dolphin and does not appear to move upward.
Before Elon changed the DOGE logo on Twitter, the whale (red line) also seemed to show some interest in the very slight accumulation. This is probably something that the big holders of DOGE know. However, at the moment this is pure speculation. After the price spike occurs, the whale (red line) sells its holdings and makes a profit.
DOGE is currently facing resistance at $0.09649 and support at $0.07870. If the current resistance level is broken, the DOGE may face new resistance at $0.11160.
At press time, DOGE is trading at $0.092470, down 5.4% in 24 hours.