The 280,000 new Dogecoin addresses: Traders, is this a buy signal for you?

The 280,000 new Dogecoin addresses: Traders, is this a buy signal for you?
The 280,000 new Dogecoin addresses: Traders, is this a buy signal for you?
  • New DOGE demand peaked during the week
  • Memecoin’s MVRVA ratio also hints at a buying opportunity

According to IntoTheBlock, the leading memecoin in the Dogecoin crypto market [DOGE] has recorded a https://twitter.com/intotheblock/status/1786403351812329701 in new demand. ohOn May 2, 28,000 new addresses were created to trade DOGE. This figure marked a 102% increase from the monthly low of new DOGE demand that was set on April 29.

As new demand grew, the daily count of addresses involved in DOGE transactions also increased over the past week. In fact, sentiment data revealed that memecoin daily active addresses increased by 27% in the last seven days alone.

This is how DOGE reacted

A spike in an asset’s network activity often precedes a spike in its price. However, this has not been the case with DOGE. Sustained demand for the altcoin over the past week has failed to initiate any significant jump in its price.

At the time of writing, DOGE was trading at $0.15. According to CoinMarketCap, it recorded just 2% price appreciation over the week, with most of it occurring in the last 24 hours. The small rally in DOGE prices over the past seven days reflects the overall market decline seen during that period. In fact, the low trading volume recorded during the analyzed period pushed the cryptocurrency market capitalization below $2.3 trillion on May 1, before it recovered.

However, the rise of DOGE in the last 24 hours is a sign of bullish sentiment.

Furthermore, according to Santiment, DOGE sentiment weighted is now on the verge of breaking its center line in an uptrend.. This metric tracks the general market sentiment about a crypto asset. When it returns a value greater than zero, market sentiment is positive. On the contrary, market sentiment is predominantly bearish when its value is below the zero line.

At press time, DOGE’s weighted sentiment was -0.348. The value of this metric will increase if trading activity increases and DOGE extends its gains in the short term.


Realistic or not, here is DOGE Market Cap in BTC terms


Now could be your time

AMBCrypto’s assessment of DOGE’s Market Value to Realized Value (MVRV) ratio revealed that it is now showing a buy signal. This metric, evaluated on the 30-day moving average, returned a negative value of -12.83% at the time of this publication.

The MVRV of an asset tracks the relationship between the current market price of the asset and the average price of each coin or token purchased for that asset.

When its value is greater than one, the market value of the asset is significantly higher than the price at which most investors acquired their shares. When this happens, the asset is said to be overvalued.

On the other hand, when it returns a negative value, the asset is said to be undervalued, since its The market value is below the average purchase price of all its tokens in circulation.

Traders interpret a negative MVRV ratio as a signal to “buy the dip” in anticipation of a price rally.

Next: Michael Saylor vs Cardano’s Hoskinson on ETH’s possible “safety” status

This is an automatic translation of our English version.

 
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