The popular meme cryptocurrency Dogecoin (DOGE) may have fallen after rising over 30% earlier this week, but according to analytics platform Santiment, there is still a ton of room for growth.
Shortly after Elon Musk changed the Twitter logo for his coveted social platform to a Dogecoin logo, Dogecoin’s value surged. On Crypto Twitter, the transfer sparked divisive discussion, with some users assuming that it was a promotional ploy meant to garner attention, laughter, or money. Regardless of Musk’s intentions, Dogecoin‘s price increased by more than a third in a short amount of time, separating from the rest of the cryptocurrency market.
Santiment’s Assessment
According to Santiment‘s assessment of the situation, there were several signs that a high was developing as major players began taking profits. During Dogecoin’s rise, three metrics—active addresses and circulation, buying and selling volume and transaction volume, and whale transactions ($100k+)—all rose simultaneously, suggesting that a local high was developing. This statement doesn’t specifically apply to Dogecoin because it applies to any asset, regardless of how meme-ified it may be.
Additionally, the 30-day MVRV, which gauges typical buying and selling returns, is currently at +11%, a relatively safe area. When altcoins reach +20% or more, they typically start to become dangerous.
Santiment argues that even after Elon changed the DOGE logo on Twitter, there should still be some room for price growth.
The analysis said that the whale accumulation suggests that certain people, possibly those close to Musk, were aware of the purposeful DOGE pump before it took place. The pink line, which depicts the whales, unloaded when the value spiked, showing that profits had been stolen.