Dogecoin Has Entered a Parabolic Run, Says Market Veteran Who Identifies 4 Factors

Despite the recent Dogecoin pullback and subsequent consolidation, analysts remain confident that the meme coin has entered a bullish phase.

According to analyst Ali Martinez, several factors indicate that Dogecoin has entered a parabolic run. Martinez recently compiled his commentaries from posts made during and after Dogecoin’s November bull run to present a wider view of its trajectory.  

Dogecoin Momentum and Whale Accumulation 

Notably, Dogecoin experienced a massive price surge following the U.S. presidential election earlier this month. From $0.1582 on Nov. 5, the meme-inspired asset climbed to a three-year high of $0.4385 by Nov.12, representing a 177% increase within a week. 

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Although DOGE faced a pullback after this peak, its momentum has remained robust. The crypto asset has held above the $0.38 price territory, and it is awaiting to leverage this region as a springboard for its next bullish run.

Martinez highlighted massive whale activity as a driving factor. On Nov. 15, whales purchased 140 million DOGE, worth $56 million at the time. This large-scale accumulation suggested that major investors remain confident in Dogecoin’s long-term potential.  

Growing Retail Interest  

Also, retail investors are also catching on to Dogecoin’s prospects. In a Nov. 17 post, Martinez observed that despite skepticism about market cap constraints and meme-driven hype, DOGE’s popularity still hasn’t reached its peak. 

Interestingly, he pointed out that search interest for Dogecoin remains far below its all-time highs, leaving substantial room for growth. 

Meanwhile, in a community poll conducted on Nov. 12, a staggering 83% of respondents chose Dogecoin over Bitcoin as their preferred investment. 

You only have $100 to invest. What do you buy?

— Ali (@ali_charts) November 12, 2024

Dogecoin Technicals Currently Bullish 

Martinez’s analysis also included technical indicators. On Nov. 12, he noted that Dogecoin’s Market Value to Realized Value (MVRV) ratio had reset to 45.65% following its recent price correction. 

Historically, Dogecoin tends to reach market tops when the MVRV ratio crosses 78%. According to Martinez, the fact that the current MVRV ratio is way below this indicates further potential for price growth.  

He also highlighted the meme coin’s adherence to a parallel price channel, with critical resistance levels at $2.40 and $18. This pattern suggests that DOGE could rebound from its current levels to hit these higher targets. 

DOGE Fibonacci Levels and Historical Context  

Further, Martinez called attention to historical data. On Nov. 10, he pointed out that Dogecoin has often peaked around the 1.618 and 2.272 Fibonacci retracement levels during previous bull runs. These levels now correspond to $3.95 and $23.26.

However, Martinez warned that such parabolic runs are typically accompanied by steep corrections. He reminded investors that during the 2017 and 2021 bull runs, Dogecoin experienced pullbacks ranging from 40% to 84%.  

Despite the recent correction, Martinez remains optimistic about Dogecoin’s future. He emphasized that these fluctuations are part of the rhythm of a parabolic run. These commentaries compiled by him suggest that DOGE is still in the early stages of what could be a historic bull run.