The increasing concern among long -term Dogecoin (DEGE) investors directs social sensitivity. This points to increasing price volatility for popular breast coin. Experienced analyst Ali Martinez evaluates Doge’s recovery potential.
Why do Dge investors worried?
Kriptokoin.comAs you have followed, the price of popular breast coin Dogecoin (Doge) is falling with the market in general. The leading crypto currency analyst Ali Martinez draws attention to Glassnode’s on-Chain data. According to the analyst, the Net -Unrelated Profit/Loss (NUPL) Metrik for long -term DEGE investors made a concern about the belief situation. Based on this change of emotion, Martinez warns that such transitions often lead to high price volatility.
Long -term Doge Investor Nupl graph. Source: GlassnodeThe data indicate the decline tendency in long -term investor NUPL. This shows that many previously profitable investors have approached or harm the head point. This change in sensitivity coincided with a significant decline in Dogecoin’s price in March. Therefore, these explanations are compatible with a wider market trend.
Historically, such changes in Nupl took place before price fluctuations. In other words, Dogecoin (Dogge) shows that more turbulence in the coming weeks. In this case, the fear of additional loss may lead some investors to exit their positions and can potentially accelerate sales pressure.
Do Dgecoin have the potential to recover?
However, Dogecoin’s technical structure may invalidate the current decline tendency. In fact, an analysis shared by Ali Martinez argues that the breast Coin is likely to recover because it is now located just above the lower limit of the long -term rising channel, which has currently guiding the price orbit since 2015.
Doge price analysis graph. Source: Ali MartinezThe breast coin is around $ 0.15 above the 0.5 fibonacci correction level, usually associated with rise turns. This technique shows that if the purchase pressure is intensified, the current range can serve as a launch ramp for further rise.
If Dogecoin attracts attention again, a rally around 0.4 dollars towards the middle line of the channel can be performed with a potentially high resistance levels of $ 0.50 and even $ 1.3, aligned with 1 and 1,618 Fibonacci extensions.
In the meantime, according to experts, there is still a chance for Dogecoin to start a parabolic rally based on certain foundations. For example, especially if the SPOT EXCHANGE COMMISSION (SEC) approves applications for Spot Doge Stock Exchange Investment Funds (ETFs), a movement towards adopting the main current may trigger an important purchase pressure.
