Dogecoin reaches critical support level where turnaround could be possible
For the fifth month in a row, a red candle appears to be forming for Dogecoin (DOGE), which is currently trading near $0.11 and marks the continuation of the bearish streak for the largest mem coin.
A red candle means that the price is trading below the opening price recorded at the beginning of the month. In the case of Dogecoin it has been four months in a row, and it looks like it is on track for a fifth.
Dogecoin has been on a downtrend since May 2021, when it hit an all-time high of $0.76. The price corrected slightly and consolidated, as seen by two monthly green candles in August and November 2021, before another round of declines.
Since May 2021, Dogecoin has marked only two green candles out of eleven monthly candles, compared to a long streak of green candles recorded before that time.
On the monthly time frame, Dogecoin is approaching an important support level at which a turnaround could be possible. The RSI indicator signals this though before a major price move and hints at consolidation. At press time, Dogecoin is priced at $0.114, a slight decrease over the past 24 hours.
Dogecoin continues to accumulate: a positive sign
Top holders of Dogecoin are receiving the token at a discount amid the current market volatility related to short-term price action for the cryptocurrency. It may be worth noting that each market cycle has an accumulation phase, during which prices flatten and the opposite sees an opportunity for investors to buy at a discount.
When this market cycle ends, the next, “mark-up phase” begins. It refers to a phase in which the market has been stable for some time and is starting to move upwards.
Over the past 24 hours, the top 100 Dogecoin holders have increased their portfolios, as WhaleStats reports a 987.76% increase in the average DOGE balance for this category of investor. The average DOGE value of his portfolio has also increased by 929.33%.
According to data from IntoTheBlock, Dogecoin’s profitability remains at 53%. Addresses higher in the money are expected to be beneficial to the network as holders are unwilling to sell their positions to break even.