The current bullishness of Dogecoin (DOGE) can be attributed to investor greed as the coin approaches profitability. With billions of DOGE tokens recently purchased at favorable prices, investors are motivated to hold onto their assets and seek further growth.
Dogecoin Investors Anticipate Profitability
The increase in investor support and the potential for profit can be seen in Dogecoin’s Market to Realized Value Ratio (MVRV), an on-chain indicator that assesses investor profits and losses. Despite a negative 30-day MVRV indicating temporary losses, values within the -7% to -19% range suggest a decreased interest in selling and a preference for accumulating assets at lower prices.
This combination of factors points to a potential Dogecoin rally in the near future.
DOGE Forecast: Potential Rally Ahead
Currently, Dogecoin faces resistance at $0.168 and $0.182. Breaking through this resistance could initiate a recovery rally, driven by investors looking to capitalize on their holdings. If the price surpasses $0.168, there is potential for further gains towards $0.182.
However, failure to break through $0.168 and losing support at $0.151 would invalidate the bullish scenario, leaving DOGE vulnerable to further correction and potentially causing losses for investors.
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