Dogecoin confirms a price reversal, moving closer to the accumulation zone

Dogecoin (DOGE) has been facing a short term fall due to the market's optimistic sentiment being saturated.

This decline is seen by many investors as a natural correction rather than the end of growth momentum. Despite the recent fall, DOGE is getting closer to a new beginning, with long-term prospects still promising.

DOGE investors may soon accumulate

The Net Unrealized Profit/Loss indicator (NUPL) long term shows that the sentiment of long-term holders (LTH) is becoming more hesitant compared to previous rallies. In the past, when the NUPL indicator exceeded the 0.5 threshold, it often led to profit-taking pressure causing prices to fall. However, this time NUPL has exceeded the threshold earlier, reflecting increased skepticism as prices rise and causing stronger selling pressure.

This adjustment may pull the price down, creating a buying opportunity for those who believe in the long-term potential of DOGE.

Dogecoin NUPL | Source: GlassnodeIn addition, the Market Value to Realized Value (MVRV) over the last 30 days also shows signs of change. Currently, this indicator records a loss of about 2.4% for new investors, bringing DOGE closer to the "opportunity zone" (when MVRV is in the range of -9% to -20%).

This is often the price range where investors start to buy in strongly, opening up opportunities for a bullish reversal in the near future.

MVRV ratio of Dogecoin | Source: Santiment## DOGE is still trying to hold the support zone

DOGE is currently trading around $0.215, just below the support level of $0.218. If selling pressure continues, the price may break through this support level and slide down to $0.198. Falling below this level would push DOGE into a consolidation zone, which could trigger a reversal and set the stage for potential growth.

The fall to $0.198 is likely to spur additional buying pressure, especially from long-term investors. This move could set the stage for DOGE to recover in the coming days.

DOGE Price Analysis | Source: TradingViewIf selling pressure eases and the price begins to reverse, DOGE could bounce off the support level of $0.218 and move towards $0.241, negating the bearish argument and signaling the start of a new upward trend for DOGE.

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