A supply squeeze may be on the horizon for the foremost meme coin, Dogecoin (DOGE). This comes after a massive surge in DOGE’s stock-to-flow ratio, which is anticipated to impact its price positively.
On-chain analytics from Santiment indicate that Dogecoin's stock-to-flow ratio reached an all-time high of 69.25 between August 18 and 19. This suggests a massive demand for Dogecoin, potentially leading to a supply squeeze and a significant price rally.
Data from IntoTheBlock shows large Dogecoin transactions hit a 7-day high of 7.37 billion DOGE on August 19, signifying increased whale activity. Additionally, large holders’ netflow spiked over 3,200% in the last week, indicating an accumulation trend among investors.
This demand also extends to retail investors, as evidenced by a 51% surge in Dogecoin's transaction volume over the last 24 hours, totaling $625.3 million.
Crypto analyst Javon Marks predicts a potential 513% rally for Dogecoin, possibly reaching $0.6533. With a bullish relative strength index (RSI) nearing a breakout, Marks foresees a major bull move driving Dogecoin to this price target.
Currently, Dogecoin trades around $0.1052, up over 5% in the last 24 hours.
