- DOGE investors are buying the dip as exchange net flows turn negative.
- Dogecoin weighted sentiment and active addresses have been trending downward.
- DOGE could find support around key accumulation level at $0.116.
Dogecoin (DOGE) is down 2% on Wednesday, but its on-chain metrics suggest that the current price level could be a good buying opportunity.
DOGE on-chain metrics reveal buying opportunity
Investors are buying the dip as DOGE's decline to $0.128 saw the top meme coin experience net exchange outflows of 339.36 million DOGE tokens.
Weighted sentiment around DOGE has remained largely below 0 in the past three months, indicating less or negative sentiment from traders towards DOGE.
The Santiment Weighted Sentiment indicator helps capture a balanced overview of an asset's social volume combined with investors' sentiment. The indicator spikes when there's increased social volume around an asset, and the messages are largely positive. It dips when the volume is still high, but the sentiment is negative. If the social volume is high but the sentiment is mixed, it stays around 0. If the volume is low, it also stays around 0.
DOGE's active daily addresses align with its weighted sentiment, decreasing steadily in the past three months.
 [01.04.42, 25 Jul, 2024]-638574647424734547.png)
DOGE On-chain Metrics
DOGE Market Value to Realized Value (MVRV) 30-day Ratio is now downward, hovering around 1.87%. This indicates that investors who bought DOGE within the last 30 days have seen an average gain of 1.87%.
Dogecoin could find support around the $0.116 price level, where investors purchased about 49.9 billion DOGE tokens. Price levels with historically heavy purchases often serve as key support, as investors who bought around the level may want to defend their holdings from further losses.
A bounce around this level could see DOGE rise to attack the $0.175 resistance.
If DOGE holders fail to sustain the $0.116 level, the coin could see a further decline as investors may sell to reduce losses.
These metrics conclude that DOGE's current price could be a good buying opportunity ahead of a potential meme coin rally when the market fully recovers.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.