An increase in network activity for an asset often precedes an increase in its price. However, this has not been the case with DOGE. Last week's steady demand for the altcoin did not lead to a significant increase in its price.
At the time of writing, #DOGE is trading at $0.15; according to CoinMarketCap, its price has only increased by 2% over the week, with most of that growth occurring in the last 24 hours. The slight increase in DOGE's price over the past seven days reflects the overall market decline seen during this period. Indeed, due to the low trading levels recorded during this period, the cryptocurrency's market capitalization fell below $2.3 trillion on May 1 before recovering.
However, DOGE's rise over the past 24 hours is a sign of bullish sentiment.
Moreover, according to Santiment, the sentiment-weighted DOGE indicator is currently on track to break the central uptrend line. This indicator tracks the overall market sentiment towards crypto assets. If its value is above zero, it means that the market sentiment is positive. Conversely, when the indicator value is below the zero line, the market sentiment is predominantly bearish.
Currently, the weighted sentiment indicator DOGE is at -0.348. If trading activity increases and DOGE continues to rise in the short term, the value of this indicator will increase.
AMBCrypto's valuation of DOGE's market realized value ratio (MVRV) is currently giving a buy signal. The indicator is evaluated by the 30-day moving average and showed a negative value of -12.83% at the time of publication.
The MVRV ratio tracks the ratio between the current market price of an asset and the average price of each coin or #token purchased for that asset.
If the value is greater than one, then the market value of the asset is significantly higher than the price at which most investors purchased it. In such cases, the asset is said to be overvalued.
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