DOGE holders turning to accumulation could have this impact on Dogecoin price

Dogecoin price fell a little further as the week came to a close, but despite a disappointing performance, some positive development did take place over the last few days. These developments might end up playing in favor of the meme-coin leader.

Dogecoin price finds support from investors

Dogecoin price trading at $0.071 is currently at a two-month low but is inching closer to March lows of $0.066. While a bounce off this level could enable the altcoin to make a recovery, it would be more likely to note gains provided it observes some support from DOGE holders.

DOGE/USD 1-day chart

Coincidentally that happens to be the case as, over the last few days, investors have been exhibiting more and more bullish behavior as the altcoin continues declining. The first sign came from investors moving more and more supply of the meme coin around. The velocity, which measures the rate at which a token changes hands or moves among addresses, hit a six-month high on May 12.

Dogecoin velocity

This suggests that any DOGE being sold off to circumvent losses is also being picked up by other investors. This way, not only is the supply being rotated among addresses, but selling is being kept to a minimum.

A similar sentiment can be observed among holders, as noted on the Market Value to Realized Value (MVRV) ratio. This indicator measures if the token holders are presently underwater or enjoying profits. 

In the case of DOGE, a dip below -10% implies that most investors are facing losses and that rather than realizing their losses, they might refrain from selling. This zone is also known as the opportunity zone, which is synonymous with recovery, as noted in past instances.

Dogecoin MVRV ratio

However, DOGE is not exactly in the zone, until that happens, traders should expect some skepticism from these mem coin investors. This is good for Dogecoin price as low prices have triggered higher participation. Over the week, active addresses have increased from 47,000 to 57,000, with an increased transaction volume noted across the network.

Dogecoin active addresses

The more investors conduct transactions, the more DOGE moves around, keeping it from registering a steep decline. Until broader market cues point towards recovery, this is the most bullish signal for Dogecoin price as it would keep the meme coin from falling to March lows of $0.066.