Markets

Dogecoin (DOGE) price waiting for a breakout or breakdown

Despite the recent volatility in the altcoin market, Dogecoin (DOGE) price has stabilized at the $0.078 support level. Multiple gauges in the series flashing green signals cause strategic investors to make bullish DOGE price predictions. Is it time for another breakout to $0.09?

The Dogecoin (DOGE) bulls have stood firm, even as the global altcoin market has contracted by 2.5% since the end of April 2023. Here’s how the recent accumulation trend among Dogecoin miners and phantom holders could lead to a price recovery.

Miners are getting more optimistic

After selling about 5% of their total reserves in April, Dogecoin miners in May entered accumulation mode. The on-chain data shows that it has increased its holdings by a total of 20 million coins in 3 consecutive days of positive net flow.

The chart below shows that Dogecoin miners only had 4.47 billion coins in their reserves as of Tuesday, May 2nd. And by Friday, May 5th, they had increased their balance to 4.50 billion DOGE.

The newly added 20 million coins are worth about $2.3 million at the current market price of $0.078

Dogecoin (DOGE) Price Prediction, May 2023: Miners Reserves Data. source: IntoTheBlock

When miners start accumulating their block rewards instead of selling, that could mean two things. First, that mining costs have been significantly reduced. Alternatively, they can build up their reserves in anticipation of price gains in the future.

Either way, an increase in miners’ reserves means less supply in the market and more upward pressure on the price of DOGE.

Moreso, since miners currently control over 3% of the total trading supply of DOGE, they can influence other investors to become bullish. If the accumulation trend continues, the bullish Dogecoin price prediction can be validated

Delusion holders may refuse to sell

Another critical factor that could add some credibility to the positive prediction of DOGE prices is the low MVRV ratio. MVRV stands for Market Value to Realized Value Ratio. It estimates the current financial situation of owners who have recently purchased an asset.

With the current situation, the majority of DOGE holders seem to be disappointed with their current financial situation. The chart below shows that the majority of investors who bought Dogecoin in the last 30 days are looking forward to losses of around 7%.

Dogecoin (DOGE) Price Prediction, May 2023: MVRV Ratio (30 days).
Dogecoin (DOGE) Price Prediction, May 2023: MVRV Ratio (30 days). source: Emotion

Significantly, any increase in unrealized losses would see DOGE holders drop to 10% underwater for the first time since USDC untie infection back in Barch

Hence, investors can be confident in a bullish DOGE price prediction because a low MVRV ratio means that current holders are unlikely to sell as they look to avoid incurring further losses.

DOGE Price Prediction: Road to $0.09?

IntoTheBlock’s DOGE price forecast, as inferred from In/Out of The Money Around Price (IOMAP) data, indicates a potential upside towards $0.09.

However, the bulls will have to deal with significant selling pressure first from 142,000 addresses holding 15 billion coins at an average price of $0.084.

But if the bullish prediction is validated, the DOGE could rise to $0.09. In that area, a group of 139,000 investors who bought 11 billion coins at a maximum price of $0.09 can slow the rally.

Dogecoin (DOGE) Price Prediction, May 2023: IOMAP Data.
Dogecoin (DOGE) Price Prediction, May 2023: IOMAP Data. source: IntoTheBlock

Conversely, bears could take control of the market if Dogecoin loses its current support at $0.076. Although, the bullish group of 140k addresses that bought 8 billion coins at an average price of $0.076 is likely to prevent this.

But if Dogecoin price loses this support, holders can expect a further decline towards $0.066. Here, there is more significant support than 520,000 addresses containing 45 billion DOGE.

Disclaimer

In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.

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