Could the fact that Dogecoin (DOGE) investors are increasing day by day trigger a new bull run?
Dogecoin (DOGE) has seen a remarkable increase in the number of new investors in recent days. This development raises the possibility that the popular meme coin may experience a price rally similar to its rise between 23 September and 12 December. At that time, the price of DOGE rose from $ 0.10 to $ 0.47.
DOGE investors are increasing day by day
Between 22 November and December, the total number of Dogecoin investors fell from 7.14 million to 6.80 million. The decline coincided with the period when the DOGE rally lost momentum and the price fell from $ 0.47 to $ 0.39. The decline in price and number of investors indicates that investors realised their gains at that time. However, according to Santiment’s on-chain data, this situation has started to change.
The popular on-chain data platform reports that the number of DOGE investors has reached 6.68 million. In line with this data, it shows that 60,000 new investors have added Dogecoin to their wallets in the last 10 days. This increase in the number of new investors is generally seen as a positive sign and indicates that crypto money is becoming popular among individual investors.
This increase also comes at a time when crypto whales continue to exert their influence on Dogecoin. If this trend continues, the price may rise above $0.42.
MVRV ratio supports the rise
The uptrend in Dogecoin is supported by the Market Value to Realised Value (MVRV) ratio. The MVRV ratio measures the ratio between the current price of an asset and the average purchase price and analyses whether an asset is overvalued or undervalued. A high MVRV ratio may indicate that the asset is overvalued. A low MVRV ratio, on the other hand, indicates that the asset is undervalued and presents a buying opportunity.
As of the writing of the news, Dogecoin’s 30-day MVRV ratio rose from negative territory to 0.69 percent. Previously, when such a reverse rise occurred, the price went from $ 0.10 to $ 0.47. If history repeats itself, Dogecoin may once again experience a parabolic rally.
