Dogecoin (DOGE) Faces a Supply Squeeze as Stock-to-Flow Ratio Hits All-Time High

Data from the on-chain analytics platform Santiment shows that Dogecoin faces a supply squeeze, with the meme coin's stock-to-flow ratio rising.

Dogecoin (DOGE) is preparing for a supply squeeze as the meme coin’s stock-to-flow ratio surges to new highs. This development indicates a massive demand for Dogecoin, which could lead to a price surge.

Key Takeaways

Dogecoin faces a supply squeeze as demand outstrips supply.

Large transactions and whale activity have surged.

Crypto analyst Javon Marks predicts a 513% rally for DOGE.

A supply squeeze occurs when the demand for an asset exceeds its supply, typically driving up prices. Several indicators suggest that Dogecoin is currently experiencing high demand from both retail and institutional investors.

Dogecoin’s Stock-To-Flow Ratio Surges

Data from the on-chain analytics platform Santiment reveals that Dogecoin is facing a supply squeeze. The meme coin’s stock-to-flow ratio, which measures a commodity’s scarcity, has risen to an all-time high (ATH) of 69.25 between August 18 and 19.

This metric indicates a massive demand for Dogecoin, which could lead to a supply squeeze as the demand for the meme coin continues to outpace its supply. Ultimately, such a supply squeeze drives up prices, suggesting that a significant price rally is in the cards for Dogecoin.

Other on-chain metrics confirm that demand for Dogecoin is rising and that a price surge could happen anytime soon.

Dogecoin’s Large Transactions Surge

Data from the market intelligence platform IntoTheBlock shows that large transactions involving Dogecoin have surged, hitting a 7-day high of 7.37 billion DOGE on August 19. This indicator measures transactions above $100k and provides insight into whale activity.

The surge in large transactions indicates increased activity from whales, who may be accumulating Dogecoin ahead of its next leg up, which appears to be imminent.

Moreover, the large holders’ netflow, which measures the net flow of large holders’ deposits and withdrawals from exchanges, has spiked by over 3,200% in the last seven days. During this period, this category of investors has recorded more inflows than outflows, indicating that they are adding to their positions and moving them off exchanges.

Retail Investors Accumulate Dogecoin

The massive demand for DOGE is not limited to whales; retail investors are also accumulating the foremost meme coin. Data from CoinMarketCap shows that Dogecoin’s transaction volume has surged by over 51%, with $625.3 million traded during this period.

This indicator measures the total amount of a cryptocurrency traded in both fiat and crypto markets over the last 24 hours and provides insight into the asset’s liquidity and demand. The surge in Dogecoin’s transaction volume indicates increased buying pressure from retail investors as they acquire the meme coin.

Dogecoin Price Prediction: How High Could It Go?

Crypto analyst Javon Marks has shared his insights on how high Dogecoin could rise on its next leg up. The analyst noted that the meme coin could enjoy a 513% rally to reach the $0.6533 price target. Interestingly, the analyst added that this price surge could occur at “high speeds,” suggesting that it might happen faster than some might imagine.

This bullish prediction follows his analysis of Dogecoin’s relative strength index (RSI), which he observed is nearing a breakout point and diverging with prices. With such bullish signals and prices still broken, Marks is confident that a “major bull move” is underway, which would propel Dogecoin to this price target.

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