Dogecoin (DOGE) Enters Bullish Phase as Analysts Point to Whale Accumulation and Growing Retail Interest

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

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

One analyst, Ali Martinez, has recently compiled his commentaries from posts made during and after Dogecoin’s November bull run to provide a broader perspective on its trajectory.

According to Martinez, several factors indicate that Dogecoin has entered a parabolic run. Notably, the meme-inspired asset experienced a massive price surge following the U.S. presidential election earlier this month. From $0.1582 on Nov. 5, it climbed to a three-year high of $0.4385 by Nov.12, indicating a 177% increase within a week.

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 appears to be preparing to utilize this region as a springboard for its next bullish leg.

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

Moreover, growing retail interest is also contributing to the positive sentiment around Dogecoin. 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.

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.

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

Additionally, he 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.

Furthermore, 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.