Assessing if Dogecoin can hold $0.215 after a 13% weekly drop

• Dogecoin exhibited a bearish market construction.
• The on-chain metrics confirmed a purchase sign for the memecoin.

Dogecoin [DOGE] has been trending downward since December. The main memecoin has been unable to claim bullish momentum since failing to flip the $0.36-$0.38 zone to assist a month in the past.

For the reason that seventeenth of February, the token has already shed 13%. This downward trajectory would possible take DOGE to a key assist stage at $0.215.

Will the bulls be capable of defend this stage and provoke a comeback?

Will the Dogecoin current a shopping for alternative?

Supply: DOGE/USDT on TradingView

The day by day chart of DOGE initially confirmed a bearish market construction. This shifted on the finish of January when the value moved beneath the swing low at $0.305 and did not defend the 50% retracement stage.

On the time of writing, Dogecoin was approaching the 78.6% retracement stage at $0.215. Through the rally in March 2024, the $0.2 and $0.215 ranges acted as robust resistance. Now, their retest as assist is a constructive signal for bulls.

Nevertheless, any weak point in Bitcoin [BTC] might nonetheless negatively impression the altcoin market.

Supply: Santiment

Knowledge from Santiment indicated that current losses introduced a great shopping for alternative for the medium time period. The Imply Coin Age (MCA) and MVRV ratios over the previous three months have been examined, exhibiting a gentle uptrend in MCA.

In the meantime, the MVRV ratio was at -31%, its lowest level within the final three months. This demonstrated that Dogecoin holders skilled important losses on common over the previous three months.

The rising MCA steered accumulation. Regardless of the value downtrend, the dearth of DOGE transactions prior to now three months defined the MCA pattern and was an indication of bullish conviction.

Collectively, these elements supplied a purchase sign for the token.

Supply: Santiment

Provide distribution knowledge indicated accumulation amongst all cohorts of holders, apart from these proudly owning greater than 100 million Dogecoins.

The 100k-10M DOGE cohort has steadily elevated in numbers over the previous month, though not as quickly because the smaller accounts.

The annual issuance of 5 billion DOGE makes the memecoin barely inflationary. Nevertheless, the expansion in holder numbers in February suggests elevated demand and will assist Dogecoin’s restoration.