Dogecoin (DOGE) has seen a sharp 25% drop in the past week, hitting a two-month low of $0.247. This drop has shaken investor confidence, with investors now showing a more bearish sentiment towards the cryptocurrency.
The MVRV (Market Value to Realized Value) metric indicates that DOGE is undervalued by around 23%, suggesting a potential buying opportunity. However, the current low liquidity could hinder a significant recovery, keeping the price below key resistances.
To reverse this bearish trend, Dogecoin needs to break above the $0.268 mark. Should it manage to break above this resistance, there is potential for a rally towards $0.311, which would invalidate the current bearish outlook.
In short, while there are signs that DOGE may be undervalued, investor confidence remains shaken. Recovery will depend on the cryptocurrency’s ability to overcome critical resistances and restore market interest.
