- Despite a recent dip in value, Dogecoin (DOGE) may be poised for a significant price increase, with indicators suggesting a potential run toward $0.25.
- Currently, 81% of DOGE holders are in profit, suggesting that the coin has not yet reached its peak in this cycle.
- Traders are betting on an increase, with the Funding Rate turning positive, indicating a premium on DOGE’s trading price compared to its spot value.
As Dogecoin’s value dips, on-chain analysis suggests a potential price surge, with indicators pointing to a run toward $0.25. This article delves into the factors that could drive this increase.
DOGE’s Potential for a 40% Hike
Despite Dogecoin reaching $0.20 about a month ago, it is currently trading at $0.15. However, historical performance indicates that for the coin to hit its peak, at least 95% of holders need to be in profit. Currently, 81.05% of the total Dogecoin circulating supply is in profit. If this pattern holds, Dogecoin might need to rise by another 40% for talks about the peak to be valid, potentially pushing the coin’s price to $0.25.
Positive Funding Rate and Bullish Wagers
On May 5th, Dogecoin’s Funding Rate was negative, suggesting a bearish market. However, the Funding Rate has since turned positive, indicating that DOGE is trading at a premium per price compared to its spot value. This change suggests a potential bullish market for DOGE. However, the recent price decrease suggests that longs are not yet reaping rewards for their positions, which could be bearish for DOGE in the short term. Nevertheless, a potential rebound from a low of $0.14 could trigger a rally in the midterm.
Conclusion
While Dogecoin’s recent dip in value may suggest a bearish market, several indicators suggest a potential price surge. The high percentage of DOGE holders in profit, the positive Funding Rate, and historical performance all point to a potential run toward $0.25. However, market dynamics are complex and unpredictable, and investors should always exercise caution and conduct thorough research before making investment decisions.
