Dogecoin
is
down
by
6.87%
in
the
past
24
hours
after
a
brief
cooldown
in
bearishness.
However,
the
downturn
has
given
Dogecoin
a
hint
of
bullish
reversal
as
it
has
entered
a
historically
prominent
buy
zone.
Interestingly,
this
is
suggested
by
the
MVRV
ratio,
which
currently
hints
at
a

very
bullish
short-term
bounce

for
DOGE.

DOGE’s
30-day
MVRV
clocking
in
at
-13%,
the
king
of
meme
coins
looks
attractively
priced
for
traders
eyeing
a
fresh
entry.
This
is
because
historically,
ratios
around
this
range
have
preceded
rallies
and
served
as
the
best
buying
zones.

 

Dogecoin
Price
Enters
Opportunity
Zone

MVRV
stands
for
Market
Value
to
Realized
Value.
It’s
a
metric
that
compares
the
current
market
cap
of
a
crypto
asset
to
the
realized
cap,
i.e.,
the
total
amount
paid
for
the
coins
currently
in
circulation.

In
simple
terms,
MVRV
shows
whether
an
asset
is
overvalued
or
undervalued
relative
to
its
fair
value.
A
high
ratio
signals
potential
overvaluation,
while
a
low
or
negative
ratio
hints
at
undervaluation
and
buying
opportunities.

Historically
for
Dogecoin,
an
MVRV
ratio
between
-8%
and
-20%
has
always
presented
the
start
of
price
recoveries.
In
the
past,
these
periods
of
negative
MVRV
were
followed
by
significant
price
rallies.
An
example
of
this
occurred
not
too
long
ago
when
the
price
of
DOGE
dropped
by
31%
between
March
14
and
March
20,
resulting
in
the
MVRV
ratio
falling
to
-15%.

However,
the
meme
coin
reversed
course
shortly
after
and
went
on
a
78%
price
surge
peaking
at
$0.2262
on
March
28.

Currently,
the
30-day
MVRV
ratio
is
at
-13%
after
weeks
of
bearish
price
action.
Interestingly,
the
drastic
price
decrease
even
saw
the
MVRV
falling
to
a
low
of
-16.7%
in
the
past
seven
days,
according
to

Santiment
data.

What’s
Next
For
DOGE
Price?

At
the
time
of
writing,
Dogecoin
is
trading
at
$0.1168
and
is
on
a
12.30%
decline
in
the
past
24
hours.
Going
by
the
MVRV
ratio
alone,
we
could
actually

 

witness
DOGE
rebounding

to
the
upside
very
soon.
While
this
doesn’t
guarantee
an
imminent
bounce,
it
aligns
with
phenomenon
that
led
to
Dogecoin
rallies
in
the
past.

According
to
data

from
IntoTheBlock,
DOGE
is
currently
positioned
above
a
significant
on-chain
support
level.
Per
the
In/Out
of
the
Money
metric,
Dogecoin
is
now
sitting
in
a
strong
support
zone
where
41.81
billion
DOGE
tokens
were
acquired
by
investors
at
an
average
price
of
$0.106.
This
demand
zone
could
prove
to
be
very
important
if
DOGE
were
to

extend
its
current
price
decline

and
fall
below
$0.11. 

Featured
image
created
with
Dall.E,
chart
from
Tradingview.com

Go to Source
Author: Scott Matherson

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