Is there hope for a rebound in Dogecoin's price? Bulls are defending the key demand area of $0.142-$0.16, while the 30-day MVRV indicator suggests that a bottom has formed.
Dogecoin (DOGE) traded at $0.154 today (June 23), up 4.84%, with a 24-hour trading volume exceeding $1.43 billion. The continuous rise in Dogecoin's price marks a strong rebound from the two-month low of $0.142 reached yesterday. This rebound also witnessed bulls defending the key demand area maintained since November 2024. Given that this level remains strong, will Dogecoin see a recovery? How high could its price rise? Let's explore. Bulls defend the demand zone for Dogecoin.
As the prices of most cryptocurrencies plummeted, the price of Dogecoin fell to $0.142 last weekend. This price not only set a new low for several months but also pushed this top meme coin into a key demand range of $0.142 to $0.16.
Looking at the price trend of the token since last November, it is evident that buyers tend to enter at this demand area. After the price cooled down in the fourth quarter of 2024, Dogecoin's price bottomed out in this area in March. After the bulls successfully defended the support level, the price rebounded by 40% within weeks.
In April of this year, Dogecoin once again held this support level and rose from $0.14 to $0.25 within weeks, becoming one of the best-performing meme coins at the time. If this trend repeats, the price of Dogecoin may rebound strongly again.
If history repeats itself and bulls start buying at the current price, Dogecoin's price could recover and aim for the 61.8% Fibonacci level of $0.21. If overall market sentiment returns to a level of greed, Dogecoin may continue its upward trend with a target price of $0.34.
In March and April, when bulls held this level, the RSI was at an oversold level, just like the current situation. Therefore, seller fatigue and the entry of new buyers (who view $0.142 to $0.160 as a good entry point) could trigger a bullish reversal.
However, if history does not repeat itself and market sentiment remains fearful, traders should expect Dogecoin to drop to $0.13. Meanwhile, a recent analysis report from CoinGape indicates that a symmetrical triangle warns that if the support level of $0.16 is not held, Dogecoin's price could experience a 60% downside breakout.
30-day MVRV signal bottom
The 30-day Market Value to Realized Value (MVRV) ratio for Dogecoin suggests that the price may have bottomed out, with a recovery imminent. According to data from Santiment, this indicator has dropped to -15.43%, indicating that traders who bought Dogecoin in the past 30 days are incurring significant losses.
A negative MVRV ratio may also signal that Dogecoin's price is about to recover. This indicator suggests that most Dogecoin holders are currently at a loss and may be less willing to sell until they break even. The negative MVRV ratio along with the RSI indicator showing seller fatigue supports a bullish outlook for Dogecoin's price.
Is Dogecoin's price about to recover?
Technical analysis shows that as long as the bulls hold the demand range between $0.142 and $0.160, the price of Dogecoin is likely to rebound soon. Historical data indicates that since November, bulls have been entering at these prices, contributing to bullish breakouts within weeks.
The MVRV index also supports this bullish outlook as it shows that most recent buyers are suffering significant losses. If traders are unwilling to sell at a loss, this could pave the way for a market recovery in the short term.