Prominent market analyst Ali Martinez has highlighted the crucial metrics that would steer another round of Dogecoin rally amid a sideways price trend.
As Bitcoin has failed to break back into price discovery, altcoins have looked choppy. The onslaught has not spared meme coin leader Dogecoin, which has recently faced mixed price actions.
Meanwhile, Dogecoin has found support around its current level after rejecting lower prices more than a week back. Data from TradingView shows that the meme coin has ranged between $0.2400 and $0.2700 since then, as market participants await its next course of action.
Notably, analyst Ali Martinez has acknowledged Dogecoin’s recent distribution, speculating an imminent tide drift. However, he mentioned catalysts to this course, with one already gaining momentum.
Dogecoin’s On-Chain Activities Hold Steady
The price of the leading meme coin has not just slowed down; on-chain activities in the Dogecoin ecosystem have consolidated with it. Martinez highlighted that key on-chain metrics such as daily active addresses, transactions, and whale activities are at a crucial level.
Notably, these decisive on-chain activities were key in Dogecoin’s bullish outburst following Donald Trump’s win in November. Those, commingled with bullish macroeconomics, spurred the meme coin alpha’s surge to its December high of $0.4843.
As a result, Martinez has inferred that Dogecoin’s next rally depends on those factors. He suggested an uptick in these on-chain metrics would spark another round of upsides for the doggy-themed meme coin.
Meanwhile, one of the metrics has been gaining momentum lately. In a parallel tweet, Martinez highlighted that whales have started accumulating Dogecoin.
The analysis disclosed that after whales bought 750 million DOGE earlier, they acquired another 100 million DOGE 24 hours later. He highlighted that the surge in accumulation indicates investors’ growing demand and confidence in Dogecoin’s long-term prospects.
Likely Targets Upon Uptrend Resumption
Meanwhile, Martinez also predicted Dogecoin’s next target if it rebounds from current lows. The analyst stated in another commentary that the asset could imminently surge to $4 if it keeps holding the upper boundary of its multi-year ascending channel.
His chart shows that for DOGE to reach $4, it would first breach its 1.00 Fibonacci level at $0.7390. Notably, this crucial resistance lies close to its all-time high, and overcoming the level would be sufficient to push Dogecoin to the 1.272 Fibonacci level at $4.1038.
Moreover, Dogecoin has more upside potential. Analysts have predicted that the asset could reach $10 and as high as $23 this cycle. In the meantime, DOGE trades at $0.2534.
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