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Dogecoin (DOGE) Enters Optimal Accumulation Zone  

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Dogecoin’s (DOGE) price will potentially see some struggle among bulls and bears in the coming days.

The mixed signals coming from the market suggest that the meme coin will end up moving sideways.

Buy Dogecoin or Sell It?

Dogecoin’s price is observing different indications from different metrics at the moment. On one hand, the Market Value to Realized Value (MVRV) ratio suggests that accumulating is ideal.

The MVRV ratio monitors investor profits and losses. With Dogecoin’s 30-day MVRV at -11%, indicating losses, accumulation may ensue. Historically, DOGE MVRV between -6% to -19% frequently heralds recoveries and rallies, terming it as an accumulation opportunity zone.

Dogecoin MVRV Ratio. Source: Santiment

On the other hand, the price daily active addresses (DAA) divergence indicator suggests selling. This indicator refers to the discrepancy between a cryptocurrency’s price action and the number of unique addresses involved in daily transactions. This divergence can indicate potential trend reversals or strengths in the market.

Given that participation and price action are both in decline at the moment, the market is flashing a sell signal. This could result in Dogecoin’s price countering the bullishness from any potential accumulation.

Read More: How To Buy Dogecoin (DOGE) and Everything You Need To Know

Dogecoin Price DAA Divergence. Source: Santiment

DOGE Price Prediction: Under the Bar

Dogecoin’s price, trading at $0.13, has already witnessed a considerable drawdown in the last two weeks. The meme coin will now potentially witness consolidation between $0.15 and $0.12. These two levels have been rigorously tested in the past and stand as strong resistance and support, respectively.

The indicators presenting mixed signals strongly hint at sideways action for the meme coin.

Read More: Dogecoin (DOGE) Price Prediction 2024/2025/2030

Dogecoin Price Analysis. Source: TradingView

Any breakout or breakdown will only invalidate the bearish-neutral thesis, sending DOGE to either above $0.16 or below $0.11. The former would help recover the recent losses, while the latter would extend them.

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.



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