Key Insights
- Dogecoin’s Mayer Multiple remains well below previous peak levels, signaling that the cryptocurrency is not yet in overheated market conditions.
- A surge in active addresses and whale accumulation indicates a potential market shift, with renewed interest from large holders.
- $0.20 remains a significant resistance level, with over 11 billion DOGE held by investors at breakeven price points.
Dogecoin’s market cycle indicators have shown signs of resetting, leading many traders to believe that the cryptocurrency could be preparing for a potential price rally. Traders are noticing a subdued valuation, rising active addresses, and increased accumulation by whales, signaling a shift in the digital currency’s market dynamics.
The Mayer Multiple, a key indicator that tracks market valuation, is currently sitting far below previous market peaks. With the latest reading at 0.66005, Dogecoin is well below the significant highs seen during the 2017 and 2021 market tops. This suggests that Dogecoin is not yet in the overheated territory typically associated with market blow-offs, which occurred during those historic price surges.
On-Chain Metrics Indicate Market Reset
In addition to the Mayer Multiple, another crucial metric, the “Number of Days Spent at a Loss,” has shown a significant reset. This indicator tracks how long Dogecoin has been held at a loss by investors. Historical data show that extended periods above 1,200 days at a loss were common during previous bear markets, particularly in 2014-2015 and post-2021. However, recent data reveal a compression in these figures, suggesting that the market may have reset, similar to phases that preceded past price increases.
The market’s current shift is further supported by a notable surge in active addresses. According to Glassnode, the number of daily active addresses on the Dogecoin network spiked to 71,589 on December 3, marking the highest level since September. This uptick in activity shows a broader participation in the network, indicating renewed interest from the community.
Moreover, whale accumulation is adding another layer of optimism. Santiment’s data reveals that whales, or large holders, purchased a substantial 480 million DOGE in just 48 hours. The data suggests a reversal of the trend seen in October when whale holdings were declining. This renewed accumulation signals that large investors are positioning themselves for potential gains.
Key Resistance Zone Near $0.20
Despite these positive indicators, the $0.20 level remains a formidable resistance point for Dogecoin’s price. According to Glassnode’s cost basis distribution heatmap, around 11.72 billion DOGE were accumulated at this price range. This zone represents a large volume of coins transitioning from unrealized loss to breakeven, creating a dense resistance zone.
For Dogecoin to break through this resistance and push higher, the market will need to absorb the significant supply at this level. The future price trajectory will largely depend on whether on-chain activity, including whale accumulation and rising active addresses, can sustain and overcome this resistance.
