DOGE fluctuated between $0.072 and $0
- DOGE fluctuated between $0.072 and $0.070 this week.
- Two important dog coin whale groups are adopting contradictory market trends.
- The declining NVT ratio suggests that bullish whales may have the upper hand.
DOGE started poorly in May 2023 as investors shifted their attention to new popular memes such as PEPE and DogeElonMars (ELON). On chain data shows that with whale investors taking the opposite stance, the bullish $0.10 DOGE price forecast is currently pending.
The dog coin price showed early signs of a bullish reversal after rebounding 3% from its recent low of $0.071 on May 13th. But since then, the price of dog coins has been hovering between $0.072 and $0.075.
This stagnation can be attributed to the opposing stance taken by two key whale populations on the DOGE price this week.
This is a data-driven on chain analysis that analyzes how bullish whales will gain the upper hand in the coming days.
Two Dog Coin Whale Shoals Confronting
According to on chain data, two important whale populations took opposite positions towards DOGE this week.
Between May 13th and May 19th, the dog coin whale, which holds a balance of 10 million to 100 million coins, has sold 860 million DOGE.
But at the same time, the figure below shows how whales holding between 100 million and 1 billion tokens purchased 1.72 billion DOGE.
On chain data shows that although the different trading activities of the two groups are synchronized, bullish whales buy twice as many tokens as short sellers.
The excessive demand for bullish whales may drown out the selling pressure of bears and push DOGE into another bullish price trend.
At current prices, dog coins seem to be undervalued
In the past few weeks, investors have become increasingly interested in emerging memes such as PEPE, and the demand for Doggy Coins has greatly decreased. The decrease in the ratio of dog coin network value to transaction volume (NVT) indicates that DOGE is undervalued.
In addition, the figure below shows how the NVT ratio decreased by 62% from 163.06 to 63.15 between May 7th and 17th.
Typically, strategic investors use the NVT ratio to evaluate the relationship between the market value of cryptocurrencies and underlying trading activities.
As mentioned above, when the NVT ratio significantly decreases, it indicates that the asset is undervalued.
In short, a low NVT ratio may stimulate other investors to imitate bullish whale trading. If this situation occurs, an increase in demand may validate the bullish DOGE price forecast.
DOGE Price Forecast: Bulls can target $0.10
IntoTheBlock's Global Fund In/Out (GIOM) data suggests that the next increase in dog coin prices may reach $0.10
The bulls may have confidence in this bullish price forecast for DOGE, but they must first clear the initial key resistance level of $0.075. However, the profit taking of 158000 investors who purchased 44 billion DOGE tokens at the highest price of $0.075 may trigger a pullback.
Nevertheless, if DOGE breaks through this resistance level, bulls can gain enough momentum to push the $0.10 target.
Nevertheless, if DOGE unexpectedly retreats below $0.066, bears may reject positive dog coin price predictions. Although 470000 investors who purchased 12.2 billion tokens at an average price of $0.066 can provide support.
However, if this support level is broken, it may trigger a greater decline to $0.056.
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])
