Dogecoin (DOGE), one of the star altcoins of the 2021 bull market, rose as high as $0.76 in May 2021.
DOGE, which is approximately 70% below its 2021 ATH, rose to as high as $0.5 in January this year.
Afterwards, DOGE, which could not escape the downward trend, fell to the level of $0.2.
While people are wondering when the biggest memecoin Dogecoin will experience a big rally again, one analyst said that Dogecoin has not yet reached enthusiasm and short-term investors are saving.
Joao Wedson, founder and CEO of cryptocurrency analysis company Alphractal, evaluated the latest situation of DOGE in his analysis shared from his X account.
Analyzing various indicators on Dogecoin, Wedson first noted that in December 2024, DOGE reached ATH for the current cycle, exactly at the CVDD Alpha line.
Stating that the CVDD Alpha line is a special measurement indicator for cycle tops, Wedson stated that according to this indicator, DOGE may have reached its cycle top.
However, the analyst, who also looked at the Reserve Risk indicator, noted that the December 2024 peak was weak and lacked strong on-chain interest compared to other peaks. Still, he noted that the Reserve chart has perfectly predicted every DOGE peak since 2016.
Wedson then noted that short-term investors are accumulating more DOGE each day, according to a Hodl Waves chart. According to the analyst, this chart shows that the supply is increasing by up to six months.
On this point, the analyst noted that historically, the short-term investor accumulation pattern for Bitcoin (BTC), DOGE, and other cryptocurrencies has tended to push prices higher. According to Wedson, this is due to the influx of new speculative money into the market and an increase in Realized Market Value.
Finally, Wedson touched on the MVRV Z-Score indicator. According to the analyst, the MVRV Z-Score hasn’t shown the kind of over-exuberance we’ve seen in 2021 or previous cycles.
As a result, Wedson noted that given the current circumstances, it is important to monitor the behavior of Dogecoin holders daily, as continued accumulation of Dogecoin could signal that the price could rise in the near future.
*This is not investment advice.