Understanding Dogecoin Volatility: Investment Opportunities Amid Uncertainty

Jakarta, Pintu News – Dogecoin (DOGE), the cryptocurrency popularly known as ‘memecoin’, is struggling to break through $0.2 resistance. As the crypto market attempts to stabilize after a tumultuous week, Dogecoin (DOGE) still seems to be struggling. However, there are indications that the memecoin may be starting to show signs of recovery.

Dogecoin Price Policies: Between Hope and Reality

Dogecoin (DOGE) continues to experience significant selling pressure, as evidenced by the dominance of sellers on On-Balance Volume (OBV). The swinging market structure shows a bearish tendency, with the price currently below the 78.6% Fibonacci retracement level taken from the rally in early May.

There is a liquidity cluster at the local low of $0.17, which may be tested again before starting a recovery. The pattern formed by Bitcoin (BTC) since May 23, where there is a big drop on Thursday or Friday, followed by a period of stagnation over the weekend and a recovery on Monday, may also provide clues as to what may happen to Dogecoin (DOGE) in the days ahead.

Read More: Company’s Bitcoin Accumulation Strategy Threatened, Stock Falls!

On-Chain Indicator: Buy Signal Amid Uncertainty

One metric that is interesting to look at is the Network Value to Transaction Signal (NVTS). NVTS, which is a modification of the NVT ratio, uses a 90-day moving average of the daily transaction volume to better serve as a leading indicator.

Currently, the NVTS is below the levels recorded in May-June 2024, suggesting that Dogecoin (DOGE) may be undervalued and offering a buying opportunity. The change in net position on exchanges to negative in early June, similar to what happened in January, could be an indication of accumulation.

This indicates that Dogecoin (DOGE) is flowing out of exchanges, which means fewer coins are available for sale. However, keep in mind that a negative net position change does not necessarily indicate an immediate price increase.

Investment Strategy: Dealing with Volatility Wisely

Investors interested in Dogecoin (DOGE) should prepare themselves for volatility. One strategy that can be adopted is dollar cost averaging, which allows investors to buy assets periodically at various price points to reduce the risk of volatility.

While there is potential for price increases, investors are advised to remain vigilant and consider the possibility of further declines. It is important to monitor market indicators and on-chain metrics constantly to gain a better understanding of trends that may be forming. This will help in making more informed and data-driven investment decisions.

Conclusion

In the face of an uncertain crypto market, a deep understanding of market dynamics and the use of appropriate investment strategies are essential. Dogecoin (DOGE), for all its volatility, still offers attractive opportunities for investors who are prepared to face risks and capitalize on emerging opportunities.

Also Read: Metaplanet Reaches 10,000 BTC Target: What Does It Mean for the Future of Cryptocurrency?

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• AMB Crypto. Dogecoin’s road to slow recovery: Here’s why investors should be ready for volatility. Accessed on June 17, 2025
• Featured Image: Generated by AI