- Dogecoin repeats similar MVRV pattern when prices near highs.
- Propietary Indicator breaks out, thus the DOGE correction could be short-lived.
As a seasoned crypto investor with battle scars from numerous market cycles, I’ve seen my fair share of memecoins like Dogecoin [DOGE]. The repetitive MVRV pattern and recent breakout of our proprietary indicator have me feeling a mix of caution and excitement.
Dogecoin (DOGE) remains influential within the meme coin sector, showing periodic trends on its Market Value to Realized Value (MVRV) ratio graph.
Historically, when the MVRV (Market Value to Real Value) of Dogecoin has spiked, it often indicated overvaluation and subsequent price corrections, particularly as prices reached record highs. Lately, we’ve noticed that the MVRV ratio is once more climbing towards those elevated levels.
In early 2014, late 2017, and early 2021, there were high points that followed by significant drops, which occurred after each phase of market hype ended and corrections took place.
After periods of downward correction, there followed stages of stabilization, paving the way for the upcoming upward movement.
The trends are consistent, indicating that Doge’s temporary drop might be followed by an upward surge again. This pattern hints at a recurring cycle of excitement or buzz.
DOGE prediction and profitability
Dogecoin’s price trend appeared to be corrective, as it repeatedly tested the resistance at approximately $0.49 without managing to surge beyond it. Every effort to push past this level resulted in pullbacks, suggesting that this resistance level was quite robust.
The decrease in price became noticeable when it fell beneath $0.39, a level at which traders probably seized the chance to buy orders, subsequently causing a slight upward movement in the price again.
In simpler terms, repeated contacts with the area near $0.36 resulted in price bounces back, implying that there’s been an increase in buying activity (accumulation).
In simpler terms, the MACD (Moving Average Convergence Divergence) line moved closer to its starting point while the price was experiencing difficulties. This suggests that the momentum, or rate of change, may be decreasing.
If previous trends continue, there’s a chance Dogecoin (DOGE) might fall beneath the specified support level at $0.36 before potentially rebounding towards higher prices. This pattern of experiencing a trough followed by an uptrend is quite common.
It was discovered through additional examination that around 86.67% of Dogecoin investors were making a profit during early 2015.
The proportion of ‘In The Money’ assets has consistently remained above 50%, currently standing at 74.19%. This indicates a substantial number of holders may have profited from price fluctuations due to their continued investment amidst market volatility.
In my analysis, it appears that an impressive 77.8% of Dogecoin (DOGE) holders were in the green, contrary to what we’ve seen in previous years. This suggests that a larger number of investors are currently experiencing profits with DOGE. If this trend persists, it could indicate that Dogecoin may maintain or even enhance its profitability as time goes on.
Proprietary Indicator on altcoins
In my analysis, I’ve noticed substantial spikes in altcoin volatility relative to Bitcoin, which I interpret as indicators of altseasons during the “Wave 3” and “Wave 5” periods. These fluctuations suggest that these specific times may have been particularly active for altcoins in terms of price movements.
During these instances, the spikes occurred when alternative cryptocurrencies surpassed Bitcoin’s performance, thereby attracting attention and investment funds.
Notably, the trendline established since early 2020 showed a consolidation forming a wedge pattern.
Read Dogecoin’s [DOGE] Price Prediction 2024–2025
Lately, I’ve noticed a significant uptrend that’s shattered a previous resistance level, hinting at the potential commencement of another altcoin boom cycle.
Previously, this pattern has often triggered significant fluctuations in the market, with cryptocurrencies such as Dogecoin possibly breaking free from prolonged downtrends and instead soaring to unprecedented peaks.
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2024-12-15 23:04