Dogecoin (DOGE) may be on track to surpass its highest level this year, following an impressive 28% gain over the past seven days. This surge suggests that Dogecoin could soon surpass its highest price this year.
In early October, DOGE’s price hovered around $0.10, raising the possibility of a dip below this level. However, since its rebound, several on-chain metrics suggest that the meme coin’s rally may continue.
Dogecoin Historical Trends Suggests Bullish Outlook
Dogecoin’s price surge was driven by increased buying pressure and significant whale accumulation. Notably, a series of posts and comments by Elon Musk also contributed to DOGE’s run up to $0.18.
According to Santiment, this may just be the beginning of a rally similar to DOGE’s climb to $0.22 in March. One of the key metrics that facilitated that run was the Market Value to Realized Value (MVRV) Long/Short Difference.
The MVRV Long/Short Difference checks whether long-term holders have more unrealized profits at the current price or if short-term holders do. When the reading is positive, long-term holders do, which is a bullish sign that could potentially drive prices up.
On the other hand, a negative reading indicates that short-term holders are making more money, which is typically bearish. As seen below, Dogecoin MVRV Long/Short Difference has jumped to the positive region for the first time since July.
Read more: Dogecoin (DOGE) vs Shiba Inu (SHIB): What’s the Difference?
The last time that happened, the coin’s price moved from $0.10 to $0.13 in less than three months. Therefore, if history rhymes, the value might climb by another 30% before the year ends, and this could take Dogecoin’s highest price in 2024 to $0.23, which is much more than the peak it registered in March.
Furthermore, Dogecoin has seen a notable increase in the number of new and active addresses on the blockchain.
When this metric rises, it suggests that user engagement is supporting the price increase, indicating a significant correction may not be imminent.
Additionally, the surge in new addresses shows that retail investors are joining the DOGE hype, potentially sustaining the upward price momentum.
DOGE Price Prediction: 30% Increase Possible
On the daily chart, Dogecoin’s price has risen above the supply zone at $0.16. Historically, the meme coin has found it challenging to surpass this resistance. For instance, DOGE faced rejection at this point in April and later declined to $0.13.
In June, a similar thing happened as the price fell to $0.10 after its failed attempt to surpass this point. Now that DOGE has moved above that point, there is a high chance that it could continue to climb.
Further, the demand zone at $0.10 seems to have become a notable support that could prevent Dogecoin from a notable decline. Besides that, the Awesome Oscillator (AO), which measures momentum, is in the positive region, suggesting that DOGE’s upward trend remains intact.
Read more: Dogecoin (DOGE) Price Prediction 2024/2025/2030
Given this current outlook, Dogecoin’s highest price this year is likely to rise to $0.23 before the year ends. However, if activity on Dogecoin’s network falls or demand wanes significantly, this forecast might not come to pass. Instead, DOGE might decline to $0.14.
Bitrue