Is it a good time to invest in Dogecoin? On-chain analytics reveal this
Due to the negative shift in exchange net flows, DOGE investors are purchasing the dip.
Both the weighted sentiment and the number of active addresses for Dogecoin have been declining recently.
The important accumulation level at $0.116 might be a support for DOGE.
Even if Dogecoin price fell 2% on Wednesday, the on-chain indicators indicate that now could be a great time to purchase.
Discover the purchasing opportunity with DOGE on-chain analytics
Net exchange outflows of 339.36 million DOGE tokens occurred when DOGE fell to $0.128. This suggests that investors are buying the drop.
Over the last three months, the weighted sentiment around DOGE has been mostly below zero, suggesting that traders have less than positive emotion towards DOGE.
An asset's social volume and investor sentiment may be better captured with the use of the Santiment Weighted Sentiment indicator. When there is a surge in positive social activity around an asset, the indicator goes up. When the emotion is negative and the volume is still strong, it declines. It hovers near zero if there is a lot of social volume but mixed emotion. Also, when the volume is little, it remains close to zero.
The 30-day ratio of DOGE's market value to its realized value (MVRV) is now falling, sitting at about 1.87%. Those who purchased DOGE throughout the last 30 days have, on average, enjoyed a gain of 1.87%.
Investors bought around 49.9 billion DOGE tokens at the $0.116 price level, which might provide as support for Dogecoin. Investors who purchased around a level of historically significant purchases may be looking to protect their holdings from potential losses, making that level a crucial support.
If the $0.116 level is not sustained by DOGE holders, investors may sell the currency to prevent losses, which might lead to a further decrease.
Based on these measures, the present price of DOGE would be a great time to purchase before the market rebounds which might lead to a surge for meme coins.
