- Volatility around the memecoin hit a 30-day low, suggesting sideways movement
Other on-chain metrics supported the prediction, but DOGE’s price might surge later on
As a researcher with experience in analyzing cryptocurrency markets, I believe that Dogecoin’s (DOGE) recent 2.60% increase in the last 24 hours might not indicate the start of a new rally. Based on my findings from various on-chain metrics, it seems more likely that DOGE will continue its sideways movement for now.
If you believe that Dogecoin‘s [DOGE] 2.60% price increase over the past 24 hours signifies the start of a new rally, it may be worth reconsidering this perspective. This viewpoint is not without foundation.
As a researcher at AMBCrypto, I discovered supporting evidence for this hypothesis. The initial piece of data we uncovered was the coin’s volatility. Through our analysis using IntoTheBlock, Dogecoin’s volatility had reached its lowest point in the preceding 30 days.
As a researcher studying the cryptocurrency market, I’ve observed that heightened volatility can lead to swift shifts in the value of a digital asset, such as memecoins like DOGE. Nevertheless, when the trend shows a decrease, it suggests that the amplitude of price swings may have lessened.
Stay calm, the pump is not yet here
If the metric does not increase as expected, reaching $0.25 for DOGE may take longer than anticipated based on current market conditions. At present, DOGE is priced at around $0.15.
The price of the altcoin has fluctuated between $0.14 and $0.16 for a while. However, this pattern of price movement could continue if there are no significant developments on the Dogecoin network.
Additionally, certain on-chain indicators suggested a trend of lateral price action. For example, the number of active addresses, which reflects the level of user engagement on the network, could support this notion.
In the past, an increase in Dogecoin’s activity level has typically resulted in a rise in its value. For instance, during March when the number of daily active addresses approached 250,000, the price of DOGE climbed up to $0.22 on trading platforms.
As a dogecoin investor, I’ve noticed that the network participation metric currently hovers around 52,400 at press time. This number suggests that not many people are actively engaging with the DOGE network lately. If this trend continues in the upcoming days, it’s likely that DOGE will continue trading within a narrow range, much like it has been doing for the past few weeks.
DOGE is not dead
As an analyst, I’ve noticed that despite the pessimistic forecast for DOGE, the MVRV Z Score indicator from AMBCrypto suggests that it may not plunge into a bear market.
MVRV signifies Market Value to Realized Value ratio in the context of cryptocurrencies. This metric determines whether a specific cryptocurrency appears overvalued or undervalued compared to its fair value. The addition of Z Score serves to evaluate the current market condition, distinguishing between periods of correction and bullish trends.
In simpler terms, a negative value for the metric indicates a potential downturn or bear market. Conversely, when the Z Score is positive and greater than zero, it implies that the price may rise or experience growth on the charts.
As a crypto investor, I’m keeping an eye on Dogecoin’s Market Value Realized Value Z-Score (MVRV Z). At the moment, this indicator stands at 0.88. This suggests that Dogecoin’s value could potentially increase in the future. However, for me to feel more confident about this trend, I would prefer to see the MVRV Z score surpassing 1.05. If it fails to do so, Dogecoin might continue trading between $0.14 and $0.16 on the charts.
Read Dogecoin’s [DOGE] Price Prediction 2024-2025
An increase in the Z Score at a leisurely pace could indicate an upcoming price rise, potentially leading to a significant price jump later on.
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2024-05-11 01:11