Bull Run Returns, Can Dogecoin (DOGE) Price Break $0.22?
During the crash, Dogecoin’s price plummeted to $0.083. Although the meme coin has since recovered its value, the question remains: will this recovery last?
The recent decline in Dogecoin has caused its market value to realized value (MVRV) Z-score to fall to a negative value. The MVRV Z-score is used to measure whether a cryptocurrency is undervalued or overvalued relative to its fair value.
When the score is positive, long-term holders tend to make more profit than short-term holders, which usually indicates the arrival of a bull market. Conversely, when the score is negative, short-term holders make more profit, which indicates the arrival of a bear market.
This pattern was last seen in February. Prior to that, it appeared in October 2023, at the beginning of the current bull market cycle, and in June 2022, during a deep bear market phase.
Typically, if the price of an asset breaks below a support level, the trend is bearish. But for DOGE, it appears to have broken through the 78.6% Fibonacci retracement level. Fibonacci levels, often referred to as Fibonacci levels, can pinpoint price points that could become support or resistance levels.
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The 78.6% Fibonacci level indicates that the price may precede another target. As can be seen from the figure below, the price of DOGE could reach $0.16 (61.8% golden pocket ratio) in the medium term. If it successfully breaks through this level, the coin price could jump to $0.22 in the long term. This long-term prediction could be invalidated if the overall market falls into a bear market cycle. If this is the case, the price of Dogecoin could fall to $0.049.
