The volatility of the dog coin market has been on the rise in the past few days. Leaving aside the surge that occurred in early April, the current price volatility of DOGE is at its highest level since December 2022
The volatility of the dog coin market has been on the rise in the past few days. Leaving aside the surge that occurred in early April, the current price volatility of DOGE is at its highest level since December 2022. This may mean it's time to take some action.
Now, considering the "meme" nature of dog coins, it seems ironic to associate the term "fundamental" with dog coins. However, DOGE has made significant progress, and reviewing the data on the chain will only give us a clearer understanding of the network's operation.
The NVT ratio of Dogcoin has been on a downward trend in the past few months. In the past day, it has fallen by over 31%. As shown in the figure below, the current number [~39] is about 8 times lower than its 52 week or 1-year high.
This ratio basically compares network value with transaction volume. A high number usually indicates that the network can exceed the value transmitted to it, and vice versa.
Nevertheless, low NVT ratio values have repeatedly been proven to be a good opportunity for accumulation in the past. In fact, they also coincided with the bottom and early bull market stages. Therefore, the current situation may be a blessing in disguise for investors.
Meanwhile, it is worth noting that the net flow of major shareholders has also begun to rebound to a positive number. In fact, its location is much better than 30 to 90 days ago.
A positive net flow figure usually indicates an inflow of funds and implies that the holder is purchasing DOGE. This means that the price of assets will react to it sooner or later. Therefore, this seems to be a suitable time for investors to invest.
Disclaimer: The content of this article is sourced from the internet. The copyright of the text, images, and other materials belongs to the original author. The platform reprints the materials for the purpose of conveying more information. The content of the article is for reference and learning only, and should not be used for commercial purposes. If it infringes on your legitimate rights and interests, please contact us promptly and we will handle it as soon as possible! We respect copyright and are committed to protecting it. Thank you for sharing.(Email:[email protected])
