Dogecoin (DOGE) price has seen a disappointing performance over the past weeks after failing to form a positive ascending triangle pattern.
However, the continued optimism of investors may change this situation as they may move to accumulate.
Dogecoin investors may accumulate
Dogecoin price has a chance to recover as long as DOGE holders remain bullish in their behavior. The market value to realizable value (MVRV) ratio indicates this possibility. This ratio measures the profit and loss of the investor.
Currently, Dogecoin’s 30-day MVRV is at -13%, indicating profitability, which could lead to buying pressure. Historically, Dogecoin’s MVRV between -8% and -20% usually indicates the beginning of a recovery or rally, indicating an area of opportunity for accumulation.
In addition, the meme coin leader continues to attract the attention of potential investors, as evidenced by the adoption rate. This rate refers to the participation of new addresses in the network and the transactions they make.
Generally, a low adoption rate indicates that a project is losing momentum in the market, which is a negative sign. However, DOGE has consistently recorded a high adoption rate despite a slight decline over the past two months. The 27% adoption rate indicates that investors are still optimistic about making profits from Dogecoin.
DOGE Price Prediction: Back from 3-Month Low
Dogecoin price, which is trading at $0.124 at the time of writing, is close to reclaiming $0.128 as support. The meme coin hit a three-month low this week, but a recovery is likely with the above-mentioned signals supporting the upside.
The target for DOGE is $0.142, which is the next major resistance level. A breakout is crucial as it will allow the digital asset to return to $0.151.
However, if the $0.128 support level fails to be reclaimed, Dogecoin price could face a decline or consolidation. Either way, $0.116 is likely to be tested, and losing it would invalidate the bullish hypothesis.
