Key Insights
- Dogecoin’s price is hovering near support at $0.218 and is possibly entering an accumulation zone.
- Indicators like NUPL and MVRV show that investor hesitation is rising, but hinting at a possible bounce.
- Analysts point out technical patterns and whale activity as signs of an upcoming trend reversal.
Dogecoin news shows that DOGE is once again in the spotlight. Investors are bracing for big things to come. After a 38% gain in July, the popular meme coin has hit a price ceiling.
Also, it is causing fears of a short-term correction. Yet, the bigger picture could be bullish for those tracking Dogecoin news.
Dogecoin News: DOGE Approaches Support Level
Dogecoin news and analysis indicated that the current price of Dogecoin sits just above $0.218. It is a level many analysts see as necessary for many reasons. It is essential because a break below could push the price into a freefall toward $0.198.
This means the range between $0.198 and $0.206 is a significant accumulation zone. It is also interesting how this price range aligns well with the Fibonacci extension tool, as illustrated.
This zone is a strong support zone, and buyers will be more than willing to enter if prices slip in.
Put, DOGE may manage to hold above $0.218 and bounce back. If this happens, the asset could see a real rebound towards $0.241.
The bulls might feel more generous and initiate a break above this level. This could invalidate the current bearish trend and open the path to more gains.
Accumulation Signs from Market Metrics
Two important market indicator ratios further prove the current investor sentiment. The indicators include the Net Unrealized Profit/Loss (NUPL) and the Market Value to Realized Value (MVRV).
The NUPL for example, tracks long-term holder confidence. It recently crossed below the 0.5 mark, which has historically been an indicator of investor skepticism. When prices cross below 0.5 on the NUPL indicator, it tends to be ready for further drops.
However, the NUPL is also great for identifying investor accumulation. In the same vein, the 30-day MVRV ratio currently shows a modest 2.4% loss among recent DOGE holders. This means that if this ratio falls into the -9% to -20% range, Dogecoin would officially enter the “opportunity zone.”
These indicators show that Dogecoin investors are hesitating. However, they also show that Dogecoin has some potential.
Dogecoin news shows that the prices are testing critical support levels. Also, the meme coin could become more appealing to buyers looking to enter at a discount.
Analysts Predict Reversal Amid Whale Moves
Dogecoin’s charts are giving analysts more reasons to be cautiously optimistic. According to TradingView data, DOGE recently broke out of a long-term descending channel.
This move is essential. That’s because it tends to mark the end of a bearish trend and the beginning of a new upward cycle.
Analysts like MMB Trader believe that Dogecoin can hit resistance at $0.405. This could be seen before aiming for higher targets like $0.75 or even $1 (assuming that volume and sentiment pick up).
Other analysts like BitGuru believe the $0.206 support is strong enough to hold Dogecoin up. It also appears that the whales are aware of this. This is because renowned analyst Ali Martinez recently pointed out that the whales are accumulating massively.
The last 24 hours have seen the whales accumulate a staggering 310M DOGE, according to the Dogecoin news by an analyst. This accumulation spree has pushed their holdings from 72.65 billion to 73.34 billion.
This behavior shows that they expect a rebound soon. It could be seen considering how whales tend to buy during price dips and accumulate during sideways markets.
While indicators and whale buying show an incoming recovery, not everyone agrees. Certain analysts are still on the sidelines and expect DOGE to drop below $0.20.
Still, history supports the idea that Dogecoin tends to rebound strongly after testing this support zone. If accumulation continues and sentiment improves, a new upward trend may not be far off.