Dogecoin (DOGE) Plunges Into Favorable Accumulation Range
Dogecoin (DOGE) is currently experiencing a downturn in its price on the daily chart, but this should be perceived as part of a larger bullish trend. Seizing the right opportunity to invest could yield significant benefits, but caution should be exercised at certain levels.
Considering the market value to realized value (MVRV) ratio, it is expected that Dogecoin’s price will embark on a bullish surge in the days to come. The meme coin is currently undervalued, indicating potential profitability for investors. The 30-day MVRV of DOGE sits at -15%, suggesting losses and consequently inviting accumulation.
DOGE’s historical recovery range typically falls between -9% to -21%, which is categorized as an opportunity zone. Hence, accumulating DOGE at its current price is likely to generate profitable returns once the recovery phase commences.
In addition, there is a growing conviction among investors regarding an upcoming rally. This confidence arises from the movement of supply within different categories of HODLers. Long-term holders, who possess DOGE for over a year, have seen a significant 9% increase in supply in the past two weeks, becoming the largest holders at 47%. This development further substantiates the high level of confidence and conviction in the meme coin, potentially fueling the rally and facilitating its sustainability.
Looking at the price prediction, DOGE is currently trading at $0.137 and is contained within a descending wedge pattern. This bullish chart pattern, characterized by converging trendlines with lower highs and lower lows, suggests a potential trend reversal when the price breaks out of the wedge formation to the upside. In such a scenario, the market conditions could propel DOGE to $0.168, representing a 24% increase for the meme coin.
However, it is important to note that the chances of a death cross occurring are also rising at this time, which could prolong the ongoing decline. Consequently, there is a possibility that DOGE’s price may fall below the descending wedge and test $0.127 as support, which would invalidate the bullish thesis.
To sum up, despite the current price decline, DOGE has entered an ideal accumulation zone, making it an advantageous time to consider investing. With the potential for a bullish breakout and a growing level of confidence among investors, Dogecoin’s prospects for profitability remain favorable.