DOGE holders may sell if it rises above key accumulation zone

DOGE will reclaim a key level if it rises by 5%, and traders will likely sell as they break even.
DOGE's social volume has reached its lowest level in the past year.
DOGE has underperformed other top meme coins year-to-date.

Michael Ebiekutan FXStreet

DOGE is down more than 1% on Thursday, following key details from its on-chain data revealing a potential support level and buy zone amid market uncertainty.

Why the coast looks gloomy for DOGE

DOGE will reclaim a major support level if it rises by 5% above $0.112. IntoTheBlock's data shows that more than 84K addresses purchased 35.12 billion DOGE around $0.103 to $0.112.

However, with uncertainty still saturating the market and many expecting a slow July for cryptocurrency prices, the $0.112 level could flip to a resistance. Considering it is DOGE's largest accumulation zone, most investors who purchased the largest meme coin at the $0.112 level may consider de-risking after they break even.

DOGE Global In/Out of the Money

The current market quietness could also prove a buy-the-dip opportunity. Since June, DOGE saw its lowest social volume in the past year, hovering around 131 to 145. Also, DOGE's Market Value to Realized Value (MVRV) 30-day ratio at -8% is a potential buy signal in preparation for future price growth.

However, it's key to note how DOGE has underperformed other meme coins in the top 100 category. Other meme projects like PEPE, WIF, BONK, FLOKI and BRETT have seen an influx of capital and new users while DOGE lags.

Hence, DOGE may respond slowly to bullish market triggers, unlike the 2020/2021 cycle, when it was the only major meme coin in the top 100.

In the short term, DOGE could see several shorts liquidated if it rises to $0.111, which has a liquidation leverage of 52.43, according to Coinglass data.

Meanwhile, Ethereum-based meme coin MOG coin has been a standout cryptocurrency in the top 200 after rising 17% in the past week.

Author

Michael Ebiekutan

FXStreet

With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addi

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