Between August 18 and 19, Dogecoin (DOGE) saw an astonishing spike in its stock-to-flow ratio, marking a notable shift for the meme coin whose price has struggled for gains. Currently, DOGE is priced at $0.099, representing a 40% decrease over 90 days, but it could be poised for a major price rally.
The stock-to-flow ratio measures cryptocurrency scarcity. According to Santiment, DOGE’s ratio jumped to 69.25, signaling a supply squeeze, which could trigger a notable rally in the coming weeks. Increased demand during a scarcity period can lead to price increases.
The rise in active and new addresses on DOGE’s network suggests increased blockchain usage and adoption, reinforcing the forecast that DOGE might exit its long-standing bearish trend. More activity indicates a bullish outlook while declines would signal a bearish trend.
BeInCrypto used the Global In/Out of Money (GIOM) indicator to analyze DOGE’s next move. This tool shows if addresses are in profit, loss, or breaking even, helping to identify support and resistance levels. Over 1 million addresses purchased 11 billion DOGE at a maximum price of $0.098.
Therefore, DOGE could break resistance at $0.098 and climb to $0.15, a 50% increase. However, failure to clear resistance could lead to a price drop to $0.088, indicating potential downside if momentum shifts.
