Dogecoin – How its MVRV may have saved its short-term price action
  • DOGE price has risen significantly in the past 24 hours
  • Traders saw the recent drop as a buying opportunity.

Following the recent market-wide decline, Dogecoin (DOGE) recorded the most significant drop in its 30-day market value to realized value (MVRV) ratio. However, this was not the case at the time of writing. In fact, there has been a notable change in the past 24 hours, with DOGE also showing signs of recovery.

Analyzing the MVRV of Meme Coins

according to Santimento, Dogecoin (DOGE) MVRV recorded the most significant drop among the nine assets. In fact, 30 MVRV recorded the lowest value on the chart at -19.7%.

This metric, which compares an asset’s market value to its realized value, shows that DOGE has seen a significant drop in its valuation. This drop is in comparison to the average purchase price over the past month. Often, this can be seen as a sign of possible undervaluation, or that an asset may be oversold.

DOGE MVRV in the last 24 hours

However, the past 24 hours have seen a notable reversal in the aforementioned indicators, with DOGE’s MVRV ratio rising to around 13.6%.

This positive change could be a sign of a valuation recovery brought about by sustained buying interest.

Dogecoin 30 Day MVRV

Source: Santiment

Traders and investors may be taking advantage of the perceived low prices, signaling renewed confidence in the asset’s potential value growth.

Dogecoin recovers slightly

Finally, a recent Dogecoin analysis by AMBCrypto revealed that the price has increased slightly over the past 24 hours. On June 5, DOGE was up about 0.6% and trading at around $0.105. At the time of writing, it is trading at around $0.107, marking a significant increase of over 2%.

Additionally, the memecoin’s Relative Strength Index (RSI), a key indicator of market momentum, also recorded significant results.

The RSI has previously dipped below 30, indicating that DOGE is in an oversold condition, which is often considered to be a strong bearish trend.

Dogecoin Price Trends

Source: TradingView


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However, at the time of writing, the RSI was just above this key threshold and a slight recovery was observed on the charts.

The RSI movement could suggest that while Dogecoin is still showing signs of a bearish trend, it is subtly shifting towards a recovery, especially as buying interest is generally on the rise, which could ease some of the downward pressure on the price.

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