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Leading memecoin unable to break through the $0.2 resistance.

• Doge is in a pullback phase and may further decline in the coming weeks
• Cumulative on-chain indicators and undervaluation signals suggest investors may want to buy more Doge

As the cryptocurrency market attempts to stabilize after last week's volatility, Doge [DOGE] continues to decline. Meanwhile, BTC has formed a pattern of significant drops on Thursdays or Fridays since May 23rd, continued rising over the weekend, and beginning to recover on Monday.

After three weeks of the same pattern, a similar situation may occur on Monday. If so, Doge might begin to recover. However, at the time of writing, its price trend appears bearish.

The volatile market structure remains firmly bearish, with prices below the 78.6% Fibonacci retracement level. These levels were drawn based on the rebound in early May. Doge has liquidity accumulation at the local low of $0.17, and the price may drop to this level again before rebounding.

Some on-chain indicators suggest potential buying opportunities, but the continued selling in OBV highlights the dominance of sellers.

Doge gives buyers a green light, but prepare for volatility

Network Value to Transactions Signal (NVTS) is a modification of the NVT ratio. The original indicator uses market capitalization and daily on-chain transfer volume to understand whether an asset is overvalued or undervalued based on its network utility.

The modified version uses a 90-day moving average of daily trading volume to help NVTS better function as a leading indicator. As of the time of writing, NVTS is below the levels of May to June 2024.

Therefore, this could be a positive signal for investors, as the memecoin is undervalued and provides a buying opportunity.

Exchange net position changes turned negative in early June. A similar situation occurred in January this year. This may indicate Doge (DOGE) flowing out of exchanges, suggesting a reduction in available Doge for sale and potentially indicating accumulation.

However, negative net position changes do not necessarily mean an imminent rebound. Despite some accumulation earlier this year, Doge (DOGE) has been in a downtrend for three consecutive months.

Traders should remain cautious, expecting to retest $0.17 in the coming days and potentially further decline. Investors can start looking for buying opportunities and employ strategies like dollar-cost averaging.