Dogecoin’s bull run has resumed following the market drop, with key indicators turning positive, signaling potential growth.
The chain shows that there are more bullish addresses than bearish addresses, supporting the recent rise in DOGE prices.
If the critical resistance level is broken, the price of DOGE could reach $0.16, but the risk remains if the market turns bearish.
A few weeks ago, the market suffered an unexpected downturn, causing widespread chaos. During this period, several cryptocurrencies, including Dogecoin (DOGE), saw significant declines.
During the crash, Dogecoin’s price plummeted to as low as $0.083. Although the meme coin has since recovered in value, the question remains: will this recovery last?
Dogecoin fails to succumb to bearish aspirations
According to Santiment, Dogecoin’s recent decline has caused its market value to realized value (MVRV) Z-score to fall into negative territory. 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 a potential bear market.
The last time this pattern occurred was in February. Prior to that, it occurred in October 2023, at the start of the current bull cycle, and in June 2022, during a deep bear market phase.
However, at the time of writing, the MVRV Z-Score has moved back into negative territory, suggesting that Dogecoin could be ready for another bull run.
Furthermore, data from IntoTheBlock shows that bull and bear indicators are consistent with this view. In this case, bulls are addresses that bought at least 1% of the volume, while bears are addresses that sold a similar amount.
Currently, on-chain data shows that there are more longs than shorts. If this trend continues, Dogecoin’s price could see a bigger surge in the near future.
DOGE Price Prediction: Will the Currency Reach $0.22 Again?
On the weekly chart, BeInCrypto observed that Dogecoin is about to break out of a descending triangle. The triangle is generally considered a bearish pattern formed by a descending upper trendline and a horizontal support level.
Typically, if the price of an asset breaks below support, the trend is bearish. But for DOGE, it appears to have broken through the 78.6% Fibonacci retracement level. Fibonacci levels, as they are often called, pinpoint price points that could become support or resistance levels.
The 78.6% Fibonacci level suggests that the price may reach another target before it. As can be seen in the chart below, the price of DOGE may reach $0.16 in the medium term (61.8% Golden Pocket Ratio). If this level is successfully breached, the coin price may jump to $0.22 in the long term.
However, this long-term prediction could be invalidated if the broader market falls into a bear cycle. If that were the case, Dogecoin’s price could drop to $0.049.
