The current bullishness of Dogecoin (DOGE) is primarily driven by investor greed, as the billion-dollar coin is now on the brink of entering profitable territory.
Dogecoin Investors are Spotting the Opportunity for Profit
The popular memecoin Dogecoin is showing significant growth potential with strong investor support. The main factor motivating investors is the acquisition of 9.91 billion DOGE tokens, worth over $1.56 billion, at prices ranging between $0.151 and $0.168.
Currently, the price sits just below the upper limit of this range, indicating that these coins are entering into profitable territory. This compels investors to seek further growth and holds them back from selling their assets.
Dogecoin and GIOM. Source: IntoTheBlock
This sentiment is further reinforced by Dogecoin’s Market to Realized Value Ratio (MVRV), an on-chain indicator used to assess overall investor profits and losses. The 30-day MVRV for DOGE currently stands at -14%, which implies a loss for investors within the month.
However, this also serves as a bullish signal, as values ranging from -7% to -19% suggest a reluctance to sell. DOGE holders will likely prefer to accumulate the asset at such low prices in anticipation of future profits. Therefore, this range can be seen as a zone of opportunity.
Dogecoin MVRV Ratio. Source: Santiment
Consequently, these two indicators point towards the potential for a Dogecoin rally.
DOGE Forecast: What Can We Expect?
At present, the price faces two major barriers at $0.168 and $0.182. Breaking through the first obstacle could initiate a recovery rally for the meme coin.
This is the most probable outcome as investors will continue to hold until they realize profits. A breach of $0.168 may propel the coin towards $0.182, resulting in further gains.
6-hour chart DOGE/USDT. Source: TradingView
However, if the altcoin fails to surpass $0.168 and undergoes a decline, ultimately losing support at $0.151, the bullish scenario will crumble. DOGE tokens worth $1.5 billion will then be in the loss zone, making the price susceptible to further correction.
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