- Dogecoin‘s price action remains bearish, but on-chain metrics suggest a potential buying opportunity
- Investors should be ready for volatility and consider strategies like dollar cost averaging
Ah, Dogecoin [DOGE], the beloved memecoin that has captured the hearts and wallets of many a crypto enthusiast. Alas, the cryptocurrency market has been anything but kind to our dear DOGE, as it continues to suffer amidst the chaos.
While Bitcoin [BTC] has been attempting to stabilize after a tumultuous end to the previous week, Dogecoin has been left to fend for itself in the bearish wilderness. The price action remains bearish at press time, with the swing market structure firmly in the grips of the bears.
The price has dipped below the 78.6% Fibonacci retracement level, which was plotted based on the rally in early May. A liquidity cluster at the local low of $0.17 suggests that the price may dip to this level once again before any potential recovery.
However, some on-chain metrics suggest a glimmer of hope for investors. The Network Value to Transactions Signal (NVTS) metric, a modification of the NVT ratio, indicates that Dogecoin is undervalued and presents a buying opportunity.
The NVTS is below its May-June 2024 levels, which could be a positive sign for investors. However, it’s essential to remember that the crypto market is nothing if not unpredictable, and one should always brace for volatility.
The exchange net position change turned negative in early June, which could be a sign of accumulation. This means that less Dogecoin is available for selling on exchanges, but it doesn’t guarantee a rally is imminent. In fact, DOGE trended south for three months earlier this year, despite the accumulation.
So, dear investors, it’s time to embrace the chaos and prepare for a rollercoaster ride. Traders should remain cautious and expect a retest of $0.17 in the coming days, and potentially further losses. However, those with a long-term perspective may want to consider strategies like dollar cost averaging to take advantage of the potential buying opportunities.
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2025-06-16 09:13