[Dogecoin (DOGE) resumes bull run after brief bear market panic]
During the latest plunge, the price of DOGE dropped to $0.083 before recovering slightly, but whether the rise can continue is still unknown.
According to data from Santiment, Dogecoin’s Market Cap to Realized Value (MVRV) Z-score has entered negative territory. The MVRV Z-score assesses whether a cryptocurrency is undervalued or overvalued. When the score is positive, it usually indicates a bull market, while a negative score may indicate a bear market.
Currently, the MVRV Z-score enters negative territory, suggesting that Dogecoin may be primed for another bull run. Data from IntoTheBlock shows that there are more longs (addresses buying at least 1% of trading volume) than shorts, suggesting the price may rise.
On the weekly chart, Dogecoin is on the verge of breaking out of a descending triangle. This pattern is typically viewed as bearish, but DOGE appears to be breaking above the 78.6% Fibonacci retracement level. In the event of a successful breakout, the price could reach $0.16 in the medium term and rise to $0.22 in the long term.
However, if the market enters a bear cycle, the price of Dogecoin could drop to $0.049.
