Dogecoin shows buying opportunity as volatility declines
Dogecoin (CRYPTO:DOGE) is presenting a potential buying opportunity as its market volatility has decreased significantly.
Since dropping to a seven-month low of $0.08 on August 5, DOGE has consolidated within a narrow range between $0.09 and $0.10, indicating reduced price swings and a more stable market.
This period of consolidation is marked by DOGE trading within a horizontal channel, where the upper line at $0.10 serves as resistance and the lower line at $0.09 acts as support.
The reduced volatility is further confirmed by key indicators such as the Average True Range (ATR) and Chaikin Volatility, both of which have been on a downtrend since August 8.
The ATR has decreased by 27%, currently standing at 0.0072, while Chaikin Volatility is below its center line at -43.24.
These indicators suggest that DOGE's market activity has calmed, reducing the likelihood of sudden price movements.
Additionally, on-chain data from Santiment highlights that DOGE’s Market Value to Realized Value (MVRV) ratios, assessed over 30-day and 90-day moving averages, are flashing buy signals.
The 30-day MVRV ratio is at -1.11% and the 90-day MVRV ratio is at -15.32%.
When the MVRV ratio is below zero, it suggests that the asset is undervalued, meaning DOGE’s current market price is lower than what holders initially paid, indicating a potential buying opportunity.
If DOGE can break above the $0.10 resistance level with increased buying pressure, its price could climb to $0.11.
However, if traders overlook these signals and market activity remains low, there is a risk that DOGE’s value could decline back to $0.08.
Dogecoin's current price stability and undervalued status make it a coin to watch for potential gains as volatility fades.
At the time of reporting, Dogecoin is priced at $0.104.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Shiba Inu Developer Says SHIB Is No Longer a Memcoin
Haru Invest goes bankrupt after $1 billion in cryptocurrency theft
Robert Kiyosaki Backs Saylor’s $13M Bitcoin Prediction
Famous author and financial expert Robert Kiyosaki recently shared some exciting thoughts about Bitcoin
Messari Unveils The Solana Portal
Messari has just opened the doors to The Solana Portal, a new platform designed to make it easy to track everything happening on the Solana blockchain