Dogecoin (DOGE) is down 5% today, but its on-chain indicators suggest that the current price could be a good buying opportunity.
DOGE on-chain indicators reveal buying opportunities
Investors are buying the DOGE drop to $0.128, resulting in a net outflow from the exchange of 339.36 million DOGE tokens.
The weighted sentiment around DOGE has been largely below zero over the past three months, indicating negative sentiment or little interest from traders towards DOGE.
Santiment's Sentiment Index helps capture a balanced overview of an asset's social volume combined with investor sentiment. This index spikes when there is increased social volume around an asset and the messages are mostly positive. It falls as volume remains high but sentiment is negative. If social volume is high but sentiment is mixed, it will remain around 0. If volume is low, it will also remain around 0.
DOGE's daily active address count is in line with its weighting sentiment, decreasing over the past three months.
DOGE on-chain metrics | Source: Santiment
DOGE on-chain indices
DOGE's 30-day Market Value to Realized Value (MVRV) ratio is currently falling, hovering around 1.87%. This shows that investors who bought DOGE in the past 30 days saw an average gain of 1.87%.
Dogecoin may find support around the $0.116 price level, where investors have purchased approximately 49.9 billion DOGE tokens. Price levels with historically heavy buying often act as important support, as investors buying around these levels may want to protect their investments from further losses.
A bounce around this level could see DOGE rise to attack the $0.175 resistance.
If DOGE holders fail to maintain the $0.116 level, the coin could continue to fall as investors sell to reduce losses.
These indicators conclude that the current price of DOGE could be a good buying opportunity ahead of a potential bull run for the meme coin when the market fully recovers.
Source: https://tapchibitcoin.io/lieu-day-co-phai-la-thoi-diem-tot-de-mua-dogecoin.html
