Dogecoin Enters Bullish Opportunity Zone: Analysts Eye Rebound
  • Dogecoin’s market value to realized value (MVRV ratio) has fallen to levels that typically provide a buying opportunity ahead of a bull run.
  • Dogecoin’s bullish indicators, such as the number of transactions exceeding $10 million, have been surging recently, suggesting that whales are preparing for an imminent upswing.

After months of hitting new highs, the meme coin market has been slowing down recently. The space’s top coin, Dogecoin, is no exception, with DOGE losing a quarter of its value in the past month. But one key indicator suggests it could reverse course and embark on a bull run.

The trading price of DOGE is $0.1253,about 6% Its fortunes have changed in the past day, with it posting the biggest gain among the top 10 coins. $18.14 billionit is the largest meme coin and the 9th largest cryptocurrency overall.

Despite the recent rally, DOGE twenty five% In the past month 33% Last 90 days.

However, analysts argue that the tide is turning for DOGE, pointing to the market value to realised value ratio (MVRV ratio), which assesses the realised value of an asset against its perceived fair value, the latter being the average price at which the tokens in supply were acquired.

When the MVRV ratio is high, the asset is likely overvalued and is likely to fall. However, when the ratio is low or negative, the asset is considered undervalued, which presents a great buying opportunity for smart investors.

According to the data SantimentDogecoin’s MVRV ratio has dropped significantly recently, around -15% over the past 30 days, indicating that the asset is undervalued and may soon surge.

Dogecoin’s MVRV ratio has provided traders with similar opportunities in the past. For example, in mid-March this year, the ratio dropped significantly after DOGE lost roughly a third of its value in a matter of days. Soon after, the meme coin reversed trend and recorded an 80% surge in roughly two days, pushing the price to $0.2262.

Institutional investors typically leverage this metric, and the current market is no exception: Data from IntoTheBlock shows that transactions above $10 million have surged by roughly 150% in the past month, suggesting that whales are buying up DOGE in anticipation of an impending price rally.

The Relative Strength Index (RSI) has fallen below 30, providing further support to the MVRV indicator, suggesting that the token is in the buy zone.

However, some technical indicators suggest that DOGE may not be ready to break out just yet. For instance, its price is below the 20-day exponential moving average (EMA), which typically indicates bearish pressure.


Recommended for you:

No spam, no lies, just insights. Unsubscribe at any time.

Related Article

0 Comments

Leave a Comment