Santiment: DOGE Could Rise Further After Elon Musk Rally

Santiment, an analytics platform, says that Dogecoin (DOGE), which rose by more than 30% earlier this week, still has more room to go up.

Brian Quinlivan, who is in charge of marketing at Santiment, says that Dogecoin’s market value to realized value (MVRV) over the past 30 days is below the “danger zone.” This means that the top meme coin probably still has some room to go up.

MVRV is the ratio between the current price and the average price. The higher MVRV is, the more likely it is that the asset will be put under pressure to sell.

“As for average trading returns, we can see that the 30-day MVRV is sitting at +11%. Typically when altcoins hit +20% or more, this is a ‘danger zone’. Considering it didn’t quite get that high, even with the massive Elon-induced price surge, there could still be some extra cushion for prices to rise further.”

Quinlivan, on the other hand, says that after the recent rally, there are signs that the meme coin has hit a local top. These include a rise in three metrics: the number of active Dogecoin addresses, the volume of trading and transactions, and the number of “whale transactions.”

“When these three metrics all spike together during a time when the asset is going on a decoupled surge independent from the rest of the markets, it’s a pretty solid bet that a local top is nearly always forming here, and profit taking yourself is a wise decision.”

The director of marketing at Santiment also says that the price action of Dogecoin after this week’s rise doesn’t make him or her feel confident.

“Looking at this chart, though, it’s hard to get too excited that we’re suddenly seeing a bit [of a] correlation break, with ‘lower highs’ consistently being made even in the hours past yesterday’s pump. ‘Higher highs’ would be a much more solid indication that a bigger rally will be commencing soon.”

At the time of writing, one DOGE is worth $0.0858.