DOGECOIN (DOGE) was faced with a short -term drop, the prices lowering due to a saturation of the bullish feeling on the market.
This retreat is considered by many investors as a natural withdrawal rather than the end of its momentum. Despite recent price reductions, Doge is closer to a new start, the long -term prospects that always look promising.
Dogecoin investors could accumulate soon
The Net Profit / Loss (NUPL) NOT -made in the long term indicator shows that Dogecoin’s holders (LTH) were more uncertain than during previous rallies. In the past, the LTH crossing the 0.5 NUPL threshold have often triggered a drop in prices. However, this time, the NUPL crossed the threshold earlier than expected.
Early change suggests an increase in skepticism due to the increase in prices, which may have triggered the sales pressure. However, this could lead to a lower price, which makes Doge more attractive for new buyers who believe in its future growth potential.
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The 30 -day market value ratio / value made (MVRV) also signals a potential turning point for Dogecoin. This metric, which measures the profit or loss of Doge purchased in the last month, is currently displaying a loss of 2.4%. Although this indicates that recent buyers are at a loss, the decline could bring DOGE to the opportunity area, when the MVRV ratio is between -9% and -20%.
This area of opportunity generally marks the point where accumulation begins, because prices are considered favorable to investors who seek to enter a lower price. The downward MVRV report, associated with the decline in current prices, suggests that DOGE is approaching this area. If Doge enters this territory, it can arouse a renewal of purchase interest, which could lead to a strong recovery.
Doge Price holds
The Dogecoin price is currently at $ 0.220, holding just above the level of support of $ 0.218. If the sale continues, the price could break this support and drop to $ 0.198. A drop at this level would push Doge in the accumulation area, which could trigger a reversal and prepare the ground for a potential prices increase.
If the price drops to $ 0.198, this would probably encourage you to buy other purchases, especially from long -term investors who see value at these levels. This decision could prepare Dogecoin for recovery in the coming days, with a price rebound that could help him resume momentum.
If the sales pressure calm down and the price begins to recover, Dogecoin could bounce back on the support of $ 0.218 and move around $ 0.241. This rebound would invalidate the downward thesis and potentially signal the start of a new upward trend for Doge.
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