When Dogecoin’s 30% Gain Whispers of a Parabolic Rally, Who’s Laughing Now? 🐶💰

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Key Takeaways

Amidst the chaos of the crypto world, DOGE stands on the brink of a monumental breakout, as on-chain indicators and shifting sentiments hint at a potential bull run-despite the exodus of long-term holders. 

As the weekend looms, Dogecoin [DOGE] takes center stage among the memecoins, with investor sentiment tilting in its favor. The asset has surged 8.98% over the past day, pushing its weekly gain to 30.37% at press time. This rise is fueled by increasing demand and key on-chain metrics, suggesting a significant shift in the market dynamics.

AMBCrypto’s latest analysis delves into why DOGE might not only outshine other memecoins but also embark on a parabolic rally this weekend. 🚀

Miners Could Lead the Charge

An examination of the Mining Equilibrium Index on Alphatractal, a metric that tracks miner profitability, reveals early signs of an impending rally. Miners are now entering a highly profitable zone, as indicated by the upward trend of the index. Historically, such high profitability has often marked the beginning of market rallies.

This bullish trend is not an isolated phenomenon. The Bubble Risk metric indicates that DOGE is not currently in an overheated or euphoric phase, which typically precedes sharp sell-offs. This suggests that the growing profitability among miners is unlikely to spark a wave of selling. Instead, it fortifies the case for further gains, with the market showing ample room for a rally.

No Capitulation in Sight

According to AMBCrypto’s research, the likelihood of miner capitulation-or large-scale sell-offs-remains low. This assessment is based on the Hash Capitulation Oscillator and Market Capitulation Oscillator, both of which indicate that market sentiment has not yet entered the fearful zone. Historically, traders have initiated significant selling pressure in this fear zone when prices reach premium levels.

DOGE has experienced an extreme drawdown from its all-time high, suggesting that a rebound may be imminent. At press time, the drawdown stands at below -0.6. If this metric continues to trend toward the 0 region, it would strongly indicate a price recovery and further gains.

Whales Are Not Sitting Out

Large holders are seizing the opportunity presented by DOGE’s current price levels, viewing them as a discount. Whales have amassed 230 million DOGE at the time of writing, tightening the available supply and heightening the prospects of a supply squeeze.

Continued whale accumulation is likely to propel DOGE’s upward trajectory, supporting additional gains in the upcoming trading sessions, and potentially positioning it as the leading memecoin. 🌟

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2025-08-08 18:19