After the selling pressure in the cryptocurrency market, the wounds continue to heal, led by Bitcoin. According to blockchain data, the price of Dogecoin shows a potential uptrend, and the probability of the uptrend starting seems very high.
As billions of dollars worth of DOGE are about to make profits, the initial behavior of investors in the process will greatly affect the price of DOGE.
As of the time of writing, Dogecoin is trading around $0.158, with a significant growth area appearing with the support of investors. The main reason for this motivation is the 9.91 billion DOGE tokens held by DOGE holders.
The token supply is worth more than $1.56 billion, and the purchase price is between $0.151 and $0.168. Currently, the DOGE price is only 6% below the upper limit of the range, and above this level may mean that the supply becomes profitable. For now, this will drive investors up and prevent them from selling.
Further supporting this view is the market value to realized value (MVRV) ratio of Dogecoin. MVRV is used to evaluate the overall profits and losses generated by investors. Considering that the 30-day MVRV of DOGE price has fallen by 14%, investors may face monthly losses.
However, this could also be a bullish sign, as values between -7% and -19% indicate limits on selling. DOGE holders are more willing to save at such low prices in order to profit in the future. Therefore, the price of Dogecoin will also rise, and the area will be marked as an opportunity zone. Therefore, all signs point to the next potential price increase.
The Dogecoin price is currently facing two major resistance levels: $0.168 and $0.182. The initial resistance level marks the aforementioned supply cap, and a break above this level could trigger a recovery rally for DOGE. This would be a likely outcome, as investors would continue to invest until they see profits. Converting $0.168 would trigger a rally and could push the price of the popular memecoin to $0.182, which could generate additional gains.
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