Dogecoin ($DOGE ) Approaching Key Resistance Again: Rally or Rejection Again❓❓❓
In the previous cycle, when MVRV turned negative and then reversed upward, it marked the beginning of a new rally. However, the current MVRV trend for DOGE remains flat, indicating that although this coin is undervalued, the market has not yet started to accumulate again in large amounts.
The MVRV Z-Score compares the current market value of DOGE with the average cost of all holders. A negative reading means the average wallet is experiencing losses, which often indicates undervaluation, but only becomes bullish if followed by new buying pressure.
Dogecoin continues to trade in a descending triangle pattern. Resistance at US$0.17555 has been tested several times. Meanwhile, the support level near US$0.161 has been repeatedly breached and reclaimed, a sign of weakening structure.
The RSI (Relative Strength Index) has been trending downwards, although DOGE's price has maintained higher lows: a classic bearish divergence. This means that although the price appears stable, its underlying strength is weakening. The flat number of active addresses reinforces this finding.
The RSI (Relative Strength Index) measures momentum. A declining RSI paired with rising DOGE prices indicates buyers are losing control, often preceding a correction. Therefore, even a breakout above resistance may not be the strongest signal, as a correction could occur.
If the price falls below US$0.161 again, the bearish triangle setup continues. The invalidation zone remains below US$0.1567, with a breach there opening up room for a deeper correction.
However, if bulls manage to break above US$0.17555, the next resistance is near US$0.1832.
