Dogecoin Price Set to Surge Again? Santiment Predicts Imminent Growth

Summary:
• Dogecoin (DOGE) surged after Elon Musk changed his Twitter logo to DOGE, but Santiment analysts predict a top is forming.
• According to Santiment, the 30-day MVRV indicates there is some cushion for prices to increase further.
• Whale accumulation signals that some individuals knew of the planned pump before it happened and are taking profits now.

Dogecoin (DOGE) Price Surge Imminent

Dogecoin (DOGE) recently surged after Elon Musk changed his Twitter logo to a Dogecoin logo, decoupling from the rest of the cryptocurrency market. Analytic platform Santiment predicts more growth potential for Dogecoin despite the recent correction, as the 30-day MVRV indicates there is still some cushion for prices to rise further. Additionally, whale transactions ($100k+) indicate that some individuals with close ties to Musk may have known about the planned DOGE pump before it occurred and are now taking profits.

Santiment Analysis

Santiment’s analysis reveals several signs of a top forming as major players began taking profits. Three metrics – active addresses and circulation, trading volume and transaction volume, and whale transactions – all spiked together during Dogecoin’s surge, suggesting that a local top was forming. This phenomenon holds true for any asset no matter how meme-ified it may be. The 30-day MVRV which measures average trading returns is sitting at +11%, in a relatively safe zone as altcoins become dangerous when they hit +20% or more.

Whale Accumulation

The whale accumulation suggests that some individuals close to Musk were aware of the planned DOGE pump beforehand. When the price spike happened, whales dumped indicating profits were being taken. At press time, Dogecoin was worth $0.08 and had increased by 0.6%.

Conclusion

Dogecoin has shown considerable upside potential despite its recent correction due to investors taking profits after its surge following Elon Musk’s new Twitter logo replacement with DOGE . Analytic platform Santiment suggests that this trend could continue if whales exercise caution when investing in crypto assets with high volatility such as Dogecoin .

Takeaway

Even though Elon Musk’s tweet caused an initial surge in DOGE’s price , traders should closely monitor their investments due to high levels of volatility associated with meme coins like Dogecoin .