Dogecoin Price Prediction: DOGE could see new yearly high following 15% surge

Dogecoin price today: $0.1700

• Dogecoin could test its yearly high resistance of $0.2288 if it reclaims the $0.1756 level.
• Key technical indicators and on-chain metrics suggest that DOGE may see a correction following high investor profits.
• DOGE could trigger a meme coin season as its MVRV has reached levels last seen in May.

Dogecoin (DOGE) is up over 8% on Tuesday following a massive rally in the past three days. With the price surge, the number one meme coin could attempt to set a new yearly high in the coming days.

DOGE needs to reclaim $0.1756 to attempt new yearly high move

DOGE is attempting to sustain an extended move above the $0.1756 resistance level. This would see the top meme coin enter into a key rectangular channel after rising nearly 15% within a few hours. However, it saw a rejection around this level as selling pressure prevailed.

Since bouncing off the 100-day Simple Moving Average (SMA) on Saturday, DOGE has posted a 33% gain. With the buying momentum rising, the top meme coin could set a new yearly high above $0.2288 if it reclaims the $0.1756 level and maintains a move above it.

DOGE/USDT daily chart

However, the Relative Strength Index (RSI) has entered the overbought region, indicating potential for a price correction.

DOGE on-chain metrics indicate a potential correction

IntoTheBlock's Global In/Out of the Money data also suggests the potential for a price correction. According to the metric, over 92% of the total DOGE supply is in profit. When a large portion of a coin's supply is in profit, investors may look to partially book profits, causing a potential sell pressure on the asset.

DOGE Global In/Out of the Money (Source: IntoTheBlock)

Additionally, DOGE's Market Value to Realized Value (MVRV) Ratio, which calculates the average profit of all holders based on the price each token last moved, is at a five-month high of 77%. This indicates that all DOGE holders are, on average, 81% up on their initial investment. A very high MVRV signals potential for a price correction.

DOGE MVRV Ratio (Source: Satntiment)

With DOGE's MVRV currently at levels last seen during the meme coin season, which lasted into May, investors are anticipating another meme coin mania.

Other top meme coins like Shiba Inu (SHIB), PEPE, and dogwifhat (WIF) have also posted notable gains, with the entire meme category up by over 11%, per CoinGecko data.