Dogecoin (DOGE) price has had a disappointing run over the last couple of weeks after failing the bullish ascending triangle pattern.
However, the investors’ unaltered optimism could change this as they could move to accumulate.
Dogecoin Investors Could Accumulate
Dogecoin’s price has a shot at recovery as long as DOGE holders remain bullish in their behavior. The Market Value to Realized Value (MVRV) ratio suggests this is possible. The MVRV ratio evaluates investor profit and loss.
Presently, Dogecoin’s 30-day MVRV is at -13%, suggesting profitability, which could result in buying pressure. Historically, DOGE MVRV between -8% and -20% typically signals the start of recoveries or rallies, indicating an opportunity zone for accumulation.
Additionally, the meme coin leader continues to draw the attention of potential investors to itself, as displayed by the adoption rate. This rate refers to new addresses’ participation in the network and transactions they conduct.
Generally, a low adoption rate suggests the project is losing traction in the market, which is a bearish sign. However, DOGE has noted a consistently high adoption rate despite a minor decline over the past two months. The adoption rate of 27% suggests investors are still optimistic about drawing gains out of Dogecoin.
Read More: Dogecoin (DOGE) vs Shiba Inu (SHIB): What’s the Difference?
DOGE Price Prediction: Comeback From a Three-Month Low
Dogecoin’s price, trading at $0.124 at the time of writing, is close to reclaiming $0.128 as support. The meme coin hit a three-month low this week, but a recovery is likely with the abovementioned cues supporting a rise.
The target for DOGE is $0.142, which is the next major resistance level. Breaching it is key as it would allow the crypto asset to rise back to $0.151.
Read More: Dogecoin (DOGE) Price Prediction 2024/2025/2030
However, if reclaiming $0.128 as support fails, Dogecoin’s price could face a drawdown or consolidation. In any case, a test of $0.116 is likely, and losing it would invalidate the bullish thesis.
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Disclaimer
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