Dogecoin (DOGE) is facing another major setback, as its Market Value to Realized Value (MVRV) ratio has dropped below the 200-day moving average.
📊 Historical patterns suggest this isn’t a good sign. How much could DOGE drop this time?
Death Cross: Why Is the MVRV Drop a Warning Signal? ⚠️📉
The MVRV ratio is a key indicator that measures whether a cryptocurrency is overvalued or undervalued by comparing its market price to the average price at which investors acquired it.
🔻 When MVRV falls below the 200-day moving average, it signals that a large portion of holders are at a loss.
🔻 This often triggers panic selling and increases downward pressure, as investors rush to cut their losses.
📉 How did this play out in the past?
📅 Fall 2023: After MVRV declined, DOGE plummeted by 26%.
📅 Summer 2024: A second similar signal led to an even sharper 44% drop.
With current conditions mirroring past declines, the market is closely watching for signs of another potential crash.
Bollinger Bands Warn of Further Downside ⚡📊
🔻 Technical indicators suggest a possible additional 20% drop, which could push DOGE down to a critical support level around $0.219.
🔻 Bollinger Bands show that DOGE is nearing the lower boundary, which could trigger even more selling if support fails.
All eyes are now on whether DOGE can hold key levels or if it’s headed for deeper losses.
Could a DOGE ETF Turn the Tide? 🤔💡
Currently, altcoins are struggling, as Bitcoin has failed to break past six-figure territory. DOGE has been highly volatile, swinging 10-20% in a single day, making the market uneasy.
💡 The hope for a turnaround may lie in a Dogecoin ETF.
According to ETF theory, the approval of altcoin ETFs could facilitate the flow of capital from Bitcoin ETFs directly into a potential DOGE ETF.
📢 If a DOGE ETF becomes reality, it could provide fresh momentum and fuel long-term price growth.
Conclusion: DOGE in Trouble or on the Verge of a New Era? 🚀🐕
Dogecoin is facing a significant technical threat, potentially leading to further sell-offs. The key questions now are:
🔺 Will DOGE hold its current levels, or will it repeat past declines of over 20-40%?
🔺 Could a DOGE ETF change the game and inject new capital into the market?
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