Dogecoin is in an ideal buying zone. Why?
The price of Dogecoin (DOGE) is likely to witness some conflict between bulls and bears in the coming days.
Mixed signals coming from the market indicate that the meme coin will end up moving sideways.
Buy or sell Dogecoin?
The Dogecoin price is observing different indicators from different metrics at the moment.
On the one hand, the ratio of market value to realized value (MVRV) indicates that the accumulation is ideal.
The MVRV ratio monitors investors' profits and losses. With Dogecoin's 30-day MVRV at -11%, indicating losses, accumulation may ensue. Historically, DOGE MVRV between -6% and -19% often heralds recovery and rallies, describing it as an area of accumulation opportunities.
On the other hand, the price Daily Active Address Divergence (DAA) indicator indicates selling. This indicator indicates the discrepancy between the price movement of a cryptocurrency and the number of unique addresses involved in daily transactions. This divergence can indicate potential trend reversals or strengths in the market.
Given that participation and price action are on the decline at the moment, the market is flashing a sell signal. This could result in the price of Dogecoin facing a rally from any potential accumulation.
DOGE Price Prediction: Below the Bar
The price of Dogecoin, which is trading at $0.13, has already seen a significant decline in the past two weeks.
The meme coin will likely now see a consolidation between $0.15 and $0.12. These two levels have been thoroughly tested in the past and represent strong resistance and support, respectively.
Indicators that provide mixed signals strongly indicate a sideways movement for the meme coin.
Any breakout or breakdown would only invalidate the bearish neutral thesis, sending DOGE either above $0.16 or below $0.11. The former would help offset recent losses, while the latter would extend them.
