Dogecoin’s (DOGE) price has started to show a downward trend again in the past 1-2 days despite the rise in the last 7 days. The existing lack of price growth in the market may reflect investors selling to avoid potential losses or to take small profits. So, what is happening with DOGE?
Will Dogecoin Investors Sell?
Dogecoin’s price exited the rising wedge pattern in a downward manner. However, the recent price increase has revived hopes of a breakout. Despite this, the magnitude of the decline in June makes it seem like the meme coin is not delivering the desired recovery.
As a result, there are growing opinions that individuals investing in DOGE for the future are increasingly likely to sell their DOGE for profit. The increase in profitable investors in the active addresses analysis also draws attention.
Considering that only 27% of all active addresses among DOGE investors are currently in profit, it can be said that things are not going well. The Market Value to Realized Value (MVRV) ratio supports this situation. The MVRV ratio examines the investor’s profit and loss. Dogecoin’s 30-day MVRV indicated 8.6%, which could create selling pressure.
When past data on DOGE is examined, the level between 6% and 20%, considered the danger zone for MVRV, stands out. Generally, a DOGE correction has been observed at these levels.
The Future of DOGE
Dogecoin is trading at $0.122, with a target of breaking above $0.128. Technical analysis suggests that reaching this level could mean a potential 5% increase for DOGE.
However, the current situation of DOGE may indicate that the likelihood of this increase happening is more distant.
Contrary to the upward outlook, DOGE could experience a decline even if it reaches $0.128 and potentially consider $0.116 as a support level. If this level is also lost, DOGE could drop to $0.105, resulting in the erasure of the 17% gain seen this week.
In a possible upward scenario, the price could rise to the $0.130 region with the mentioned resistance break. However, to say that the decline has ended, the price needs to reach $0.142. After reaching this level, a new scenario could emerge in terms of price.
