Dogecoin Market Watch: Is a rally still possible amid whale selling?

Regardless, the price has stalled over the past week and erased some of its earlier gains.

Nevertheless, it has maintained a bullish market structure on the 1-day chart. Things are not that simple and bulls face a major challenge.

The market structure remains bullish after a structural breakout earlier this month. The memecoin has not formed a lower low since then. The RSI is also above the neutral 50, albeit just barely.

Together, the two suggest that bulls still have a chance to push prices higher.

However, trading volumes have been low throughout July. Even when prices started to rise in the middle of the month, it was difficult to gain bullish confidence.

The mild rebound in OBV in July reflects this fact, while the past few days have resumed the downturn.

The $0.119-0.123 area is the biggest support area nearby, while $0.139-0.143 is the biggest resistance. A retest of the $0.12 support level seems possible, and given the bullish structure on the daily chart, there could be a buying opportunity.

Is Dogecoin Still Undervalued – Should You Buy It?

The average investment age continues to trend upward. This means that investments have become more stagnant, while old coins continue to stay in their wallets.

Generally speaking, a decline in the MDIA coincides with a strong uptrend, as we saw in late February.

The 90-day MVRV ratio shows that DOGE remains undervalued despite the recent rally. This is encouraging as it reduces the likelihood of a wave of selling by profit-takers.

People holding between 10 million and 1 billion DOGE tokens (blue and orange) accumulated DOGE tokens in early July. Soon after, they began selling, indicating a lack of confidence in the coin.

Whale selling coupled with a lack of volume means that the chances of a strong rebound are slim.

In this case, a pullback in Bitcoin [BTC] would have a greater impact on sentiment, especially since the BTC-DOGE correlation is at +0.95.