In the mist of a floundering cryptocurrency market, Dogecoin (DOGE) is also succumbing to the bearish pressure. A respected trading specialist is predicting that the market’s staple meme cryptocurrency could experience even greater losses. This bearish projection is largely based on DOGE’s current technical configuration, which reveals a negative crossover between the Market Value to Realized Value (MVRV) Ratio and its 30-day Simple Moving Average (SMA). This pattern has historically signaled a trend towards a market downturn, as pointed out by renowned trading analyst Ali Martinez in a recent post.
Faltering Position of Dogecoin
The MVRV Ratio serves as a crucial parameter to evaluate if an asset is overpriced or underpriced in relation to its realized price. Notably, a situation where the ratio falls below its 30-day SMA typically implies that traders are heading into a phase of profit collection, which often gives way to an escalation in selling pressure.
“DOGE has recently witnessed a bearish crossover between the MVRV Ratio and its 30-day SMA, alluding to a sharp price correction in the near future,” mentioned Martinez.
In a following post, Martinez made a conjecture that Dogecoin could possibly plunge to $0.20. He based this assumption on the observation that Dogecoin was following a similar track to that of Pepe (PEPE). According to the four-hour chart, it seemed as though Dogecoin was mimicking the recent price downfall of PEPE.
At that juncture, Martinez stressed the importance of the $0.31 support level in preventing further price declines. If this level was breached, past price movement suggested a deeper correction towards $0.20 for DOGE, which was in line with PEPE’s recent path.
Potential Upsurge of Dogecoin
Nevertheless, Trader Tardigrade, an anonymous trading analyst, proposed that Dogecoin’s downfall might not be permanent. According to this expert, DOGE could potentially be bracing itself for a positive swing, given that the meme cryptocurrency is exhibiting a bullish divergence on its daily Relative Strength Index (RSI).
Despite DOGE creating a new lower low in terms of price action, the RSI indicator is generating a higher low. This suggests that the downward momentum is subsiding and a possible trend reversal could be on the cards. It’s noteworthy that such diversions have typically indicated an upward shift as selling pressure eases and buyers step in.
Current Market Conditions and Dogecoin
Presently, Dogecoin seems to be undergoing remarkable capital outflows as the cryptocurrency markets remain influenced by uncertainties triggered by the DeepSeek sell-off. Moreover, the market is reeling under the ambiguity following former US President Donald Trump’s announcement of a 25% tariff imposition on goods from Canada and Mexico. The downward trajectory of DOGE has been mainly precipitated by Bitcoin, which forfeited its $100,000 support level.
Although Dogecoin has been unresponsive to positive news about the token, it was expected that there would be a DOGE rally following Grayscale’s launch of a Dogecoin Trust intended to stoke institutional interest in the coin. The prospect of infusions of institutional capital from such investment products is crucial for the meme coin’s progress towards the $1 benchmark.
Analyst’s Take on DOGE Price
As of latest reports, DOGE is being traded at $0.30, suffering an over 8% drop in the last 24 hours. On the weekly graph, the token is displaying a 10% decline. Given the asset’s current technical layout, Dogecoin investors should brace themselves for further negative momentum in the short term. For instance, the price remains beneath the 50-day SMA ($0.3513) but continues to stay above the 200-day SMA ($0.2247), indicating long-term support.
Frequently Asked Questions
What is the current prediction for Dogecoin?
Prominent trading analyst Ali Martinez suggested that Dogecoin could potentially drop to $0.20 due to the bearish crossover between the MVRV Ratio and its 30-day SMA.
Could Dogecoin experience a positive swing soon?
According to anonymous trading analyst Trader Tardigrade, DOGE could potentially be gearing up for a bullish turnaround due to the bullish divergence on its daily Relative Strength Index (RSI).
What was the impact of the recent positive news about Dogecoin?
Despite the anticipation of a DOGE rally following Grayscale’s launch of a Dogecoin Trust, the token has failed to respond to this bullish news.
How can I keep track of DOGE’s future prospects?
You can obtain insightful price predictions and market trends by downloading a trusted cryptocurrency application, such as Finances Zippy.
