simply put
Bitcoin leads the cryptocurrency market recovery.
Dogecoin is showing signs of potential price increases.
Investor behavior has a crucial impact on DOGE price trends.
Bitcoin continues to lead the healing process after the cryptocurrency market faced selling pressure. According to blockchain data, the price of Dogecoin shows a potential uptrend and the chances of starting an uptrend are very high. DOGE, which is worth billions of dollars, is on the verge of profitability and the behavior of initial investors will largely influence the price of DOGE.
What’s happening on the DOGE front?
As of the time of writing, Dogecoin is trading at $0.159, having seen a significant increase on the back of investor support. The main motivation behind this is the 9.91 billion DOGE tokens held by DOGE holders. These tokens supply is worth more than $1.56 billion and were purchased at prices between $0.151 and $0.168. Currently, the DOGE price is only 6% below the upper limit of the range, which could mean profits if it exceeds this level. Currently, this situation could push investors up and prevent them from selling.
Dogecoin’s market value to realized value (MVRV) ratio further supports this idea. MVRV is used to assess the overall profits and losses experienced by investors. Considering that DOGE’s 30-day MVRV value has dropped by 14%, investors may be facing monthly losses.
However, this could also be a signal for an up move, as values between -7% and -19% indicate that selling is limited. DOGE holders prefer to accumulate at such low prices for future profits. As a result, the price of Dogecoin will rise, marking this area as an opportunity zone. Therefore, all signs point to the next potential price increase.
Key Levels for DOGE
Dogecoin is currently facing two major resistance levels: $0.168 and $0.182. The first resistance level marks the upper limit of the aforementioned supply, and moving above this level could spark a recovery rally for DOGE. Investors will continue to invest until they see profits, which is a possible outcome. A move to $0.168 could spark a rally that could potentially push the price of the popular memecoin to $0.182, which could lead to additional gains.
However, if the altcoin fails to break above $0.168 and loses the $0.151 support, the bullish thesis will be invalidated. $1.5 billion worth of DOGE tokens will result in losses, making the price of Dogecoin more vulnerable to further corrections.
