beincrypto.com
Dogecoin’s (DOGE) price is declining on the daily chart, but this is part of a much bigger bullish picture.
Jumping in at the right time could prove to be beneficial, but there are certain levels that investors must be wary of.
Is It the Right Time to Buy Dogecoin?
Dogecoin’s price is expected to show a bullish run in the coming days owing to the value of the meme coin in the market. Based on the Market Value to Realized Value (MVRV) ratio, the altcoin is currently undervalued.
The MVRV ratio measures investor’s profit and loss. Dogecoin’s 30-day MVRV at -15% signals losses, potentially prompting accumulation.
Historically, DOGE recovery occurs at around -9% to -21%, labeled an opportunity zone. Therefore, the DOGE accumulated by investors at the current price will likely bear profits once recovery initiates.
Read More: How To Buy Dogecoin (DOGE) and Everything You Need To Know
Furthermore, investors also show conviction toward a rally. This is derived from the movement of supply within different categories of HODLers.
In the last two weeks, the supply held by long-term holders has seen a 9% increase from 38%. At 47%, they are now the largest holders of DOGE supply. These investors are known to hold their assets for more than a year, ascertaining confidence and conviction in the meme coin is high.
This could drive the rally further ahead and sustain the increase.
DOGE Price Prediction: Breakout Falling Wedge
Trading at $0.137 at the time of writing, Dogecoin is moving within a descending wedge. This bullish chart pattern is characterized by converging trendlines with lower highs and lower lows, indicating a potential trend reversal when the price breaks out of the wedge formation to the upside.
Thus, DOGE breaking out would likely push the price to $0.168 propelled by the market conditions. Breaching this resistance would mark a 24% rally for the meme coin.
Read More: Dogecoin (DOGE) Price Prediction 2024/2025/2030
However, at the time of writing, the chances of a death cross are also rising, which could extend the ongoing decline. As a result, Dogecoin’s price could fall through the descending wedge to test $0.127 as support, which would invalidate the bullish thesis.