Exciting Times Ahead for Dogecoin as Stock-to-Flow Ratio Surges
Dogecoin: Primed for a Bull Run
Between August 18 and 19, Dogecoin’s stock-to-flow ratio saw a significant increase, signaling a potential shift in the market dynamics for meme coins. Despite a 40% decline in price over the past 90 days, DOGE may be gearing up for a major price surge.
Stock-to-flow ratio is a crucial metric used to assess the scarcity of a cryptocurrency. A rise in this ratio typically indicates a decrease in supply, which can lead to an increase in demand and, consequently, price.
Recent data from Santiment revealed that Dogecoin’s equity liquidity ratio hit a record high of 69.25, suggesting a growing demand for the coin that surpasses its current supply. This surge in liquidity bodes well for DOGE’s price, hinting at a potential upward trend in the coming weeks.
This surge in liquidity is a positive sign for Dogecoin, as it often indicates a forthcoming bull run, where the price could see a significant uptick.
The Rise in Active and New Addresses
Complementing the surge in the stock-to-flow ratio, the Dogecoin network has also witnessed an increase in both active and new addresses. The spike in active addresses signifies growing blockchain activity, indicating a positive market sentiment and increased usage of the cryptocurrency.
New addresses, on the other hand, indicate a rise in adoption and demand for Dogecoin. This influx of new users points towards a potential breakout from the prolonged bearish trend that DOGE has been experiencing.
Overall, the upward trend in both active and new addresses hints at a favorable outlook for Dogecoin’s price in the near future.
Predicting a Price Surge: Analyzing the GIOM Indicator
To gain insights into Dogecoin’s potential price movement, BeInCrypto analyzed the Global Inflows/Outflows (GIOM) indicator. This tool helps identify key support and resistance levels based on the profitability of addresses.
Currently, over 1 million addresses hold 11 billion DOGE at a price of $0.098 or below. This accumulation at lower price levels suggests a strong support zone for Dogecoin, with a potential breakout above the $0.12-$0.15 resistance range.
If the buying trend persists, DOGE could rally towards $0.15, marking a significant gain of around 50%. However, a failure to breach this resistance level could lead to a price retracement to $0.088, indicating a shift in momentum.
As the market dynamics shift in favor of Dogecoin, investors and traders are eagerly anticipating a potential bull run for the meme-inspired cryptocurrency.
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In addition, part of the content is the AI translation version of the English version of the BeInCrypto article.
