Dogecoin Price Reaches Coveted Opportunity Zone: What Next?

After a short bearishness cooling, Dogecoin is down 6.87% in 24 hours. The drop has put Dogecoin in a historically strong purchase zone, suggesting a bullish reversal. The MVRV ratio seems to indicate a bullish short-term rally for DOGE.

DOGE's 30-day MVRV is -13%, making it a good entry point for traders. This is because ratios around this range have preceded rallies and been the greatest buying zones.


Opportunity Zone for Dogecoin

MVRV is Market Value to Realized Value. The realized cap, or the total amount paid for coins in circulation, is compared to the market cap of a crypto asset. MVRV indicates if an asset is overpriced or undervalued compared to its fair value. A high ratio suggests overvaluation, whereas a low or negative ratio suggests undervaluation and buying possibilities.

Dogecoin price recoveries have always begun with an MVRV ratio between -8% and -20%. Past negative MVRV periods were followed by large price rallies. Recently, DOGE plummeted 31% between March 14 and 20, lowering the MVRV ratio to -15%.

Meme coin reversed trend and rose 78% to $0.2262 on March 28. The 30-day MVRV ratio is -13% following weeks of adverse market activity. According to Santiment statistics, the MVRV dropped to -16.7% in the last week due to the sharp price drop.

Dogecoin is down 12.30% in 24 hours at $0.1168. DOGE may recover shortly based on the MVRV ratio alone. This doesn't guarantee a rebound, but it's consistent with Dogecoin rallies.

IntoTheBlock shows DOGE above a considerable on-chain support level. According to the In/Out of the Money indicator, investors bought 41.81 billion DOGE tokens at $0.106, placing Dogecoin in a solid support zone. If DOGE continues to go below $0.11, this demand zone might be crucial.

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