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The price of Dogecoin has consolidated over the past five days, in connection with which some analysts concluded about the possible growth of DOGE.
Recently, the price of Dogecoin rose by 45% from $0.065 to $0.095 and exceeded the $0.087 barrier. This happened after DOGE collapsed by 50% on May 6. This recovery is likely to continue, but it will not be easy.
Given that the narrowing of the range occurs above the stable support level, the chances of a bullish breakthrough are not far-fetched.
To do so, however, the bulls need to break the $0.101 barrier to climb higher and retest the $0.125 target. This movement will be a 40% rise compared to the current position at $ 0.089.
This bullish price prediction of Dogecoin is supported by an extremely oversold state of 365-day market value to realized value (MVRV).
This intranet indicator is used to determine the average profit/loss of investors who bought DOGE over the past year. According to Santiment’s research, a value below -10% indicates that short-term holders are at a loss and are less likely to sell.
Most often, this sample is represented by long-term holders. Consequently, any movement below -15% is called the “opportunity zone”.
For DOGE, the 365-day MVRV hovers at -58%, far below the March 2020 value of -38%. This figure means that most DOGE holders are in the red and are unlikely to sell. It also indicates that cryptocurrency is in a good position to accumulate.
Closing the daily candle below $0.062 will refute Dogecoin’s bullish potential, creating a lower low. As a consequence, DOGE may fall by 25% to retest the support level at $0.046.
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