At the time of writing this article, the DOGE indicators indicate that it is not in a profitable state. However, this also provides potential investors with the opportunity to buy at a low price
At the time of writing this article, the DOGE indicators indicate that it is not in a profitable state. However, this also provides potential investors with the opportunity to buy at a low price. But doing so still comes with some risks.
The trading activity of dog coins has significantly decreased, accompanied by a sharp decline in trading volume. This means that long investors may find a relatively good entry point, but demand remains relatively sluggish.
DOGE fans have been hoping for a rebound, but recently there has been a lack of demand, leading to more surrendering. According to the latest dog coin analysis by IntoTheBlock, the number of active transactions related to this meme coin has sharply decreased in the past four months. In the long run, the average daily trading volume of DOGE in June exceeded 2.1 million, but it has now dropped to less than 38000 transactions per day.
The trading volume of dog coins has sharply decreased, which has had a significant impact on their price performance. As of the time of writing this article, the price of dog coins is 0.058 US dollars, which has dropped by 6% in the past 7 days. However, the sharp drop in prices ultimately tested the importance of current support levels.
The current support level has undergone testing and has been proven to be a solid price floor. This means that the demand for memes may revive at this level. But is there a positive demand signal?
The good news for long traders is that the decrease in trading activity indicates that selling pressure has decreased. In addition, the MeanCoin indicator has continued to rise in the past four weeks, confirming that buyers are still holding onto their positions.
However, the market still shows signs of downturn. Although people may expect investor sentiment to rise, this is not the case in reality. On the contrary, the weighted sentiment indicator (yellow indicator) is still close to the lower monthly range, indicating a lack of bullish confidence at present.
Other indicators also confirm the current low demand situation, such as trading volume showing that trading volume is still within the low range of this month. This may be because sustained economic factors may not be sufficient to stimulate investor confidence.
The latest downward trend has seriously affected investors' profitability. The market value and realized value (MVRV) is -30.6%, indicating that most dog coin holders are currently in a loss making state. The last time such a low MVRV ratio occurred was approximately 12 months ago in October 2022.
The MVRV ratio indicates that the current level may be a good opportunity for entry, as most traders hope to wait for the market to rebound. However, this does not guarantee protection from further downside risks.
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