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Dogecoin (DOGE) has experienced another death cross, as its Market Value to Realized Value (MVRV) Ratio slipped below its 200-day moving average. Historically, this has not been a positive signal. The last two times this occurred, DOGE saw price declines of 26% and 44%, respectively.
The MVRV Ratio measures whether an asset is overvalued or undervalued by comparing its market price to the average price at which investors acquired it. When it falls below the 200-day moving average, it suggests that a significant portion of holders are in a losing position, often leading to increased selling pressure.
Gamza KhanzadaevIn past instances, DOGE experienced a 26% decline in the fall of 2023, followed by a more severe 44% drop in the summer of 2024. With similar conditions emerging now, market participants are closely watching for signs of another downturn.
At the same time, the Bollinger Bands indicate further downside risk. A potential 20% decline from current levels could bring DOGE down to the lower band, which sits around $0.219. This level may serve as a critical support zone if downward momentum continues.
Can DOGE ETF bring positivity?
For DOGE, the ball is in the court of the broader market. With Bitcoin failing to break above six figures and the altcoin swinging up 10%, then down 20% during the day, it is hard to feel optimistic about this picture.
Godfrey BenjaminBut do not forget about the Dogecoin ETF. According to the ETF theory that is currently gaining traction, once exchange-traded funds on the altcoin are approved, the funds will find an easier way to flow from Bitcoin ETFs to the same DOGE ETF.
Dan Burgin
Vladislav Sopov