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HomeNewsDogecoin Analysis: MVRV Ratio Indicates Bullish Momentum Ahead

Dogecoin Analysis: MVRV Ratio Indicates Bullish Momentum Ahead

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  • Approximately 6.8 billion DOGE are on the verge of profitability, influencing investor sentiment towards holding rather than selling.
  • Dogecoin founder supports adding DOGE as a tipping option on X, citing its active use within the community.

Dogecoin (DOGE) recently witnessed a 21% decline in its price, now valued at $0.18. Despite this downturn, indicators suggest a potential upward trajectory, making it an opportune moment for investment.

Dogecoin-DOGE
Source: Santiment

The Market Value to Realized Value (MVRV) ratio, an analytic tool used to determine the profit or loss status of investors, shows DOGE is currently positioned for acquisition.

The 7-day MVRV ratio of -7.55% indicates many holders are experiencing losses, a condition often preceding a recovery phase. Historically, an MVRV ratio falling between -5% and -15% signals a conducive time for purchase.

Read more: Bullish Momentum: Dogecoin Breaks Accumulation Phase, Eyes $1 Price in 2024

Moreover, around 6.8 billion DOGE, equivalent to over $1.2 billion, are nearing a profit margin, having been bought at prices ranging from $0.169 to $0.188. As the price approaches the higher limit of this range, investor sentiment leans towards holding the asset, which may support a price increase.

dogecoin-intotheblock
Source: IntoTheBlock

Dogecoin is trading at $0.174, nearing a pivotal support level of $0.182. Surpassing this threshold could lead to a rally towards $0.200 and potentially $0.220, establishing new highs for the year.

On another note for dogecoin, Billy Markus, Dogecoin founder, voiced support for incorporating DOGE as a tipping currency on the X platform. Despite Bitcoin and Ethereum’s availability for tipping on X, their usage remains minimal.

Markus highlighted that DOGE is frequently used for transactions within its community through third-party apps, suggesting its viability for tipping on X. Following a platform user’s discussion, Markus endorsed the swift integration of DOGE for tipping, which could be completed in a few hours.

Related: Elon Musk: Dogecoin Could Play Role in Tesla Purchases in the Future

The anticipation grows for X to officially endorse DOGE payments by 2024, as it expands its payment transaction licenses. The active use of DOGE for tipping, compared to the minimal use of Bitcoin and Ethereum for the same purpose, underscores Dogecoin’s distinctive role in the digital currency ecosystem.

The current price of Dogecoin (DOGE-USD) is approximately $0.174614, showing a decrease of $0.007764 or -4.26% from its previous close. Today’s trading range has been between $0.168695 and $0.180326, indicating some volatility in the market. 

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Isai Alexei
Isai Alexei
As a content creator, Isai Alexei holds a degree in Marketing, providing a solid foundation for the exploration of technology and finance. Isai's journey into the crypto space began during academic years, where the transformative potential of blockchain technology was initially grasped. Intrigued, Isai delved deeper, ultimately making the inaugural cryptocurrency investment in Bitcoin. Witnessing the evolution of the crypto landscape has been both exciting and educational. Ethereum, with its smart contract capabilities, stands out as Isai's favorite, reflecting a genuine enthusiasm for cutting-edge web3 technologies. Business Email: info@ethnews.com Phone: +49 160 92211628
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