Trusted

Dogecoin Confirms Price Reversal, But Inches Closer To Accumulation Zone

2 mins
Updated by Harsh Notariya
Join our Trading Community on Telegram

In Brief

  • Dogecoin's price faces a short-term decline, confirming a reversal but nearing the accumulation zone due to declining sentiment and investor uncertainty.
  • NUPL and MVRV indicators suggest DOGE is approaching an opportunity zone, with a potential price drop to $0.198, sparking renewed buying interest.
  • DOGE is currently holding above $0.218; a bounce could push it toward $0.241, invalidating the bearish outlook and setting the stage for a potential recovery.
  • promo

Dogecoin (DOGE) has been facing a short-term decline, with prices dropping due to a saturation of bullish sentiment in the market. 

This retreat is seen by many investors as a natural pullback rather than the end of its momentum. Despite recent price reductions, DOGE is closer to a new beginning, with long-term prospects still looking promising.

Dogecoin Investors Could Accumulate Soon

The long-term Net Unrealized Profit/Loss (NUPL) indicator shows that Dogecoin holders (LTHs) have been more uncertain than during previous rallies. In the past, LTHs crossing the 0.5 NUPL threshold often triggered a price decline. However, this time, the NUPL crossed the threshold earlier than expected. 

The early shift suggests a rise in skepticism due to increasing prices, which may have triggered the selling pressure. This, however, could lead to a lower price, making DOGE more attractive for new buyers who believe in its future growth potential.

For token TA and market updates: Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.

Dogecoin NUPL
Dogecoin NUPL. Source: Glassnode

The 30-day Market Value to Realized Value (MVRV) ratio also signals a potential turning point for Dogecoin. This metric, which measures the profit or loss of DOGE bought in the past month, is currently showing a 2.4% loss. While this indicates that the recent buyers are at a loss, the drop could bring DOGE into the opportunity zone, when the MVRV ratio falls between -9% and -20%. 

This opportunity zone typically marks the point where accumulation starts, as prices are considered favorable for investors looking to enter at a lower price. The declining MVRV ratio, paired with the ongoing price drop, suggests that DOGE is nearing this zone. If DOGE enters this territory, it may spark renewed buying interest, which could lead to a strong recovery.

Dogecoin MVRV Ratio
Dogecoin MVRV Ratio. Source: Santiment

DOGE Price Is Holding On

Dogecoin’s price is currently at $0.220, holding just above the support level of $0.218. If selling continues, the price could break this support and move down to $0.198. A drop to this level would push DOGE into the accumulation zone, which could trigger a reversal and set the stage for a potential price increase.

If the price falls to $0.198, it would likely prompt further buying, especially from long-term investors who see the value at these levels. This move could set Dogecoin up for a recovery in the coming days, with a price bounce that could help it regain momentum.

DOGE Price Analysis.
DOGE Price Analysis. Source: TradingView

Should selling pressure subside and the price begin to recover, Dogecoin could bounce off the $0.218 support and move toward $0.241. This bounce would invalidate the bearish thesis and potentially signal the beginning of a new upward trend for DOGE.

Top crypto platforms in the US
Coinbase Coinbase Explore
eToro eToro Explore
COCA wallet COCA wallet Explore
UpHold UpHold Explore
Moonacy Moonacy Explore
Top crypto platforms in the US
Coinbase Coinbase Explore
eToro eToro Explore
COCA wallet COCA wallet Explore
UpHold UpHold Explore
Moonacy Moonacy Explore
Top crypto platforms in the US
Coinbase Coinbase
eToro eToro
COCA wallet COCA wallet
UpHold UpHold
Moonacy Moonacy

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Frame-2t314.png
Aaryamann Shrivastava
Aaryamann Shrivastava is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including Telegram Apps, liquid staking, Layer 1s, meme coins, artificial intelligence (AI), metaverse, internet of things (IoT), Ethereum ecosystem, and Bitcoin. Previously, he conducted market analysis and technical assessments of various altcoins at FXStreet and AMBCrypto, covering all aspects of the crypto industry, including...
READ FULL BIO
Sponsored
Sponsored