The post Dogecoin set for ‘steep price correction ahead,’ warns expert  appeared on BitcoinEthereumNews.com.

Dogecoin (DOGE) is facing another round of bearish pressure, aligning with the general cryptocurrency market narrative, with a trading expert warning of more losses for the top meme coin. The potential drop stems from a technical formation where DOGE is experiencing a bearish crossover between the Market Value to Realized Value (MVRV) Ratio and its 30-day Simple Moving Average (SMA). Historically, this has signaled downward pressure, according to prominent trading expert Ali Martinez in an X post on February 2. DOGE price analysis chart. Source: Ali_charts The MVRV Ratio is a key metric to assess whether an asset is overvalued or undervalued relative to its realized price. When the ratio crosses below its 30-day SMA, it often suggests that holders are entering a period of profit-taking, leading to increased selling pressure. “DOGE just experienced a bearish crossover between the MVRV Ratio and its 30-day SMA, signaling a steep price correction ahead,” Martinez stated. Initially, in another X post on February 1, Martinez suggested that Dogecoin would likely drop to $0.20, observing that it followed a similar pattern to Pepe (PEPE). Based on the four-hour chart, Dogecoin appeared to mirror PEPE’s recent price drop. DOGE and PEPE price analysis chart. Source: Ali_charts At the time, Martinez emphasized that the $0.31 support level was crucial to avoid further declines. If this support fails, historical price action indicates that DOGE could see a deeper correction toward $0.20, aligning with PEPE’s recent trajectory. Dogecoin’s potential recovery path  Meanwhile, pseudonymous trading analyst Trader Tardigrade suggested that Dogecoin’s downturn might not last long.  According to the expert, DOGE might be gearing up for a bullish turnaround, as the meme cryptocurrency shows a bullish divergence on its daily Relative Strength Index (RSI). Despite DOGE forming a new lower low in price action, the RSI indicator is printing…

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Filed under: News - @ February 2, 2025 12:19 pm