The most important coin, Dogecoin (DOGE), has entered a major accumulation zone, suggesting that now may be a good time to invest in the crypto token. This is also supported by the fact that the meme coin could soon experience a reversal of trend of the current downward trend it is experiencing.
Dogecoin market value to realized value ratio (MVRV) is a buy signal
Data of Santiment market intelligence platform shows that Dogecoin’s 30-day MVRV ratio is around -15%, meaning many Dogecoin holders are currently at a loss. This negative MVRV ratio also signals a bottom for the meme token, which typically ushers in a period of accumulation since the crypto token is currently undervalued.
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Besides new investors, current Dogecoin holders should also take advantage of this opportunity to accumulate more coins in an effort to break even on their positions. This already seems to be happening, as data from IntoTheBlock shows a notable increase in the supply of tokens held by long-term holders (more than a year).
Crypto investors buying Dogecoin’s dip may add significant buying pressure to the crypto token, which could trigger a price rally amid this market downtrend. Additionally, on-chain data shows that Dogecoin Whales also accumulate during this period. More specifically, 150,000,000 DOGE were transferred of Robinhood crypto trading platform to an unknown wallet, while an additional 76,316,694 DOGE was transferred from Robinhood to this wallet.
These whales have considerable influence on the market and their purchases could have a positive impact on the price of DOGE. At the same time, it is also worth noting that this price recovery seems imminent for DOGE, given that the recovery has historically always occurred around this MVRV range.
What the DOGE chart says
Kevin, crypto analyst (formerly OG Yomi) recently declared that Dogecoin is currently in a “major support zone, an area he believes the meme coin should not lose if the crypto market is indeed in a “true bull market.” The analyst mentioned in a previous X (formerly Twitter) job that Dogecoin must maintain above this level to remain optimistic.
Source: X
However, Dogecoin risks falling below this level, especially with the current downtrend in the market, with Bitcoin in the lead. Moreover, Fed Chairman Jerome Powell is set to announce the rate decision on May 1, which could lead to a further drop in DOGE and other crypto tokens if they decide to take a hawkish position and raise interest rates.
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At the time of writing, Dogecoin is trading at around $0.123, down more than 10% in the last 24 hours, according to data from CoinMarketCap.
DOGE price falls to $0.123 | Source: DOGEUSDT on Tradingview.com
Featured image from LinkedIn, chart from Tradingview.com
