A potential supply squeeze appears to be looming for the popular meme coin, Dogecoin (DOGE), after a notable surge in its stock-to-flow ratio, which analysts predict could drive its price upwards.
According to data from the on-chain analytics platform Santiment, Dogecoin is on the brink of a supply crunch, evidenced by the stock-to-flow ratio reaching an all-time high of 69.25 between August 18 and 19. This metric, which gauges a commodity’s scarcity, suggests a soaring demand for Dogecoin, an indicator that a supply squeeze is imminent. As demand continues to overshadow supply, prices are likely poised for a significant rally.
Market intelligence platform IntoTheBlock also presents a bullish outlook. It reports that Dogecoin’s large transactions hit a seven-day peak of 7.37 billion DOGE on August 19, revealing increased activity among whale investors. These heavyweight traders appear to be accumulating Dogecoin in anticipation of an upward movement in its price, which seems imminent. Additionally, the evaluation of the large holders’ netflow over the past week, with a rise exceeding 3,200%, highlights that these investors are bolstering their positions and transferring assets off exchanges, further signifying an accumulation phase.
The demand surge isn’t confined to heavyweight traders alone. Retail investors are also flocking to Dogecoin, as demonstrated by a 51% jump in its transaction volume over the last 24 hours, totaling $625.3 million, according to CoinMarketCap data.
Crypto analyst Javon Marks has offered optimistic predictions on Dogecoin’s trajectory. He forecasts that the meme coin could experience a dramatic 513% surge, reaching a price target of $0.6533. Marks notes that this price rally could occur rapidly, driven by bullish signals from Dogecoin’s relative strength index (RSI), which is nearing a breakout point while diverging from current prices. He asserts that these indicators point to an impending “major bull move” that could catapult Dogecoin to new heights.
At present, Dogecoin is trading at approximately $0.1052, having climbed over 5% in the last 24 hours, as reported by CoinMarketCap.
This confluence of increasing demand across retail and whale investors, coupled with favorable on-chain metrics, suggests that Dogecoin may be on the cusp of a significant price surge, making it a closely watched asset in the cryptocurrency space.
