Analyst Chris Pax drew attention to the fact that the cryptocurrency market is currently experiencing a decline caused by the situation around Bitcoin. The analyst emphasized that Bitcoin's influence is critical because its price movements affect the entire market, including Dogecoin (DOGE).
According to the expert, Dogecoin holders are demonstrating resilience, although the cryptocurrency market is under pressure, leading to significant liquidation of leveraged positions. In particular, long positions with leverage amounting to $4 million were recently liquidated for Dogecoin, Chris Pax noted.
However, according to the analyst, DOGE's current decline is the bottom and a rebound can be expected soon according to the Relative Strength Index (RSI). This suggests that Dogecoin is ready for a rally.
Pax points to increasing online buying signals for Dogecoin and the market value to realized value (MVRV) ratio supporting the idea that Dogecoin is severely undervalued at the moment.
While acknowledging that predicting exact future prices is a difficult task, he suggested that Dogecoin will perform positively in the short term.
According to the analyst, in addition to DOGE, other memcoins will be able to show an increase in quotations after the situation with the first cryptocurrency improves.
