Is Dogecoin Ready for a Price Recovery? Bulls are defending a key demand zone at $0.142-$0.16, while the 30-day MVRV indicates a downside.
Dogecoin (DOGE) is trading at $0.154 today on June 23rd, with a remarkable 4.84% increase in 24-hour trading volume and over $1.43 billion.
The ongoing rally in Dogecoin prices marks an impressive recovery from the two-month low of $0.142 that $DOGE hit yesterday.
The rebound has also seen bulls defend a key demand zone that remains in place until November 2024. As this level holds firm, is a DOGE recovery ahead, and how much could prices rise? Let’s find out.\
Dogecoin bulls defend the demand zone.
The price of Dogecoin fell to $0.142 over the weekend as most crypto prices crashed. This price not only marked a multi-month low, but also pushed TopMemCoin into a key demand zone between $0.142 and $0.16.
Looking at the coin's price movements since November last year, it is clear that buyers tend to enter this demand zone.
After the Q4 2024 rally cooled, the price of $DOGE bottomed out in this zone in March. After the bulls successfully defended support, the price rallied 40% within weeks.
In April, Dogecoin once again defended this support, and it rose from $0.14 to $0.25 within weeks, making it one of the best performing meme coins at the moment. A repeat of this trend could see the price witness another strong recovery.
If historical bears and bulls start buying at current prices, Dogecoin's price could recover and reach the 61.8% Fibonacci level target of $0.21. If broader market sentiment recovers to the bullishness, DOGE could extend the upside to $0.34.
In March and April, when bulls defended this level, the RSI was at oversold levels, as it is now. Therefore, exhaustion of sellers and entry of new buyers who consider $0.142 to $0.160 as a good entry point could initiate a bullish reversal.
However, if the date fails to settle due to market sentiment remaining in fear, traders should anticipate a fall to $0.13. Meanwhile, a recent analysis by expert market notes that a parallel triangle warns that DOGE's price could drop 60% if the $0.16 support fails to hold.
30-Day MVRV Signals Down
Dogecoin’s 30-day Market Value to Realized Value (MVRV) ratio is an indication that DOGE’s price could be lower, and a recovery could be imminent.
According to Sentiment data, this metric has dropped to -15.43%, indicating that traders who bought $DOGE in the last 30 days are sitting on significant losses.
A negative MVRV ratio may also indicate that Dogecoin's price recovery is ahead. This metric indicates that the majority of DOGE holders are now sitting at a loss, and may be less willing to sell unless they break even.
It supports the thesis for bullish prediction of Dogecoin price due to seller exhaustion as shown by MVRV and RSI.
Is Dogecoin Price Recovery Ahead?
As the technical analysis shows, it is likely that the price of Dogecoin will recover soon as the bulls defend the demand zone sitting between $0.142 and $0.160.
Historical data shows that bulls have been entering the market at these prices since November, and within weeks the bullish breakout helped.
MVRV also supports this bullish view by showing that the majority of recent buyers are sitting on significant losses. If traders become less willing to sell at a loss, this may pave the way for a near-term recovery.
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