best meme coins, Dogecoin (DOGE), has entered a major accumulation zone, suggesting that it may be a good time to invest in cryptocurrency tokens. This also means that meme coins will soon be trend reversal It stems from the downward trend we are currently experiencing.
Dogecoin Market Value to Realized Value (MVRV) Ratio is a Buy Signal
data From Market information platform Santiment This shows that Dogecoin’s 30-day MVRV rate is around -15%. This means that many Dogecoin holders are currently suffering losses. This negative MVRV ratio also indicates a bottom for the meme coin, which usually ushers in a period of accumulation as the cryptocurrency token is currently undervalued.
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In addition to new investors, current holders of Dogecoin are also taking advantage of this opportunity. accumulate Earn more meme coins to break even on your position. It seems like this is already happening. data Long-term holders of IntoTheBlock (more than 1 year) have seen a notable increase in token supply.
Crypto investors buying the Dogecoin dip could put significant buying pressure on the cryptocurrency token, which could trigger a price recovery amid the market downturn. Moreover, on-chain data shows: Dogecoin Whale It also accumulates during this period. Specifically, 150,000,000 DOGE is transferred From Cryptocurrency trading platform Robinhood Another 76,316,694 DOGE to an unknown wallet. transferred From Robinhood to that wallet.
These whales have enormous influence on the market, and their purchase can have a positive impact on the price of DOGE. Meanwhile, it is also worth noting that a price recovery for DOGE appears imminent, considering that recoveries have historically always occurred in this MVRV range.
What the DOGE chart says
Crypto analyst Kevin (formerly OG Yomi) Recently decided Dogecoin is currently in a “key support zone” where they believe the meme coin should not lose money if the cryptocurrency market is indeed in a “real bull market.” Analyst previously mentioned in X (formerly Twitter) post For Dogecoin to remain strong, it needs to stay above this level.
Source: X
but, Dogecoin There is a risk of falling below that level, especially in the current market-wide downward trend, with Bitcoin leading the way. furthermore, Federal Reserve Chairman Jerome Powell A rate decision is expected to be announced on May 1, which could result in further declines for DOGE and other cryptocurrency tokens if they decide to: hawkish stance And raise interest rates.
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At the time of this writing, Dogecoin is said to be trading around $0.123, down more than 10% in the last 24 hours. data From CoinMarketCap.
DOGE price falls to $0.123 | Source: DOGEUSDT on Tradingview.com
Featured image from LinkedIn, chart from Tradingview.com