Dogecoin (DOGE) has dropped 5% today, but its on-chain indicators suggest that the current price might be a good buying opportunity.
DOGE On-Chain Indicators Reveal a Buying Opportunity
Investors are buying in as DOGE falls to $0.128, leading to a net outflow from exchanges of up to 339.36 million DOGE tokens.
The weighted sentiment around DOGE has been mainly below 0 for the past three months, indicating negative sentiment or low interest from traders towards DOGE.
Santiment’s Sentiment Indicator provides a balanced overview of an asset’s social volume combined with investor sentiment. This indicator spikes when there is an increase in social volume around an asset and the messages are mostly positive. It drops when the volume remains high but sentiment is negative. If the social volume is high but sentiment is mixed, it stays around 0. If the volume is low, it also remains around 0.
The number of active daily addresses for DOGE aligns with its weighted sentiment, gradually decreasing over the past three months.
DOGE On-Chain Metrics
DOGE’s 30-day Market Value to Realized Value (MVRV) ratio is currently down, hovering around 1.87%. This indicates that investors who bought DOGE in the past 30 days have seen an average increase of 1.87%.
Dogecoin could find support around the $0.116 price level, where investors have purchased approximately 49.9 billion DOGE tokens. Price levels with significant historical buying activity often serve as important support, as investors who bought around this level may want to protect their investments from further losses.
A bounce around this level could see DOGE rise to challenge the $0.175 resistance level.
If DOGE holders fail to maintain the $0.116 level, the coin might continue to drop as investors sell to minimize losses.
These indicators conclude that DOGE’s current price could be a good buying opportunity before a potential price increase of the meme coin as the market fully recovers.
