Why is Dogecoin (DOGE) poised to hit $1?
In the world of cryptocurrency analysis, the MVRV (market value to realized value) ratio is a key metric. It compares an asset's market value to its realized value to determine whether it is overvalued or undervalued. When the MVRV ratio is positive, it means that holders are in profit, and vice versa, if it is negative, it indicates unrealized losses.
Dogecoin's MVRV has recently fallen to zero, which shows that its unrealized profits have disappeared. Based on past historical data, this situation often means that the probability of further price declines is reduced.
On the contrary, the probability of a recovery or rebound in its price is greater. If the MVRV falls further and falls into the range of -10% to -20%, it usually indicates that long-term holders have ushered in a great area for gold accumulation.
From a technical perspective, Dogecoin's price trajectory is consistent with this trend, which means there is a possibility of a rebound to the coveted $1 target price. Given that unrealized profits have been cut and the probability of another major crash is relatively small, the subsequent price trend of Dogecoin may depend on factors such as increased buying momentum and whether the market environment is favorable.
The relative strength index (RSI) adds a strong footnote to this optimistic outlook. At present, the RSI value is 66, which has fallen slightly from the overbought range but is still at a high level, demonstrating a strong buying boom.
Currently, the key resistance level is focused around $0.50. Once this point is successfully broken, it is possible to open up a smooth path to the psychological key price of $1. However, if the DOGE price forecast deviates and falls below its $0.30 support area, this promising bullish situation will collapse in an instant, and may even trigger a more drastic deep correction.
