Dogecoin Shows Signs of Reversal But There’s More To It
The post Dogecoin Shows Signs of Reversal But There’s More To It appeared on BitcoinEthereumNews.com.
The historical movements for Dogecoin, measured in both USD and BTC pairs, highlighted crucial price points where significant shifts occurred. In the DOGE/USD pair, each rally is marked by rapid ascents followed by corrections. Notably, a peak at around $0.34 led to a retracement, before surging to highs near $0.68, followed by a decline. Similarly, the DOGE/BTC pair showed parallel movements. Starting from lows, the pair witnessed an astronomical rise from about 0.0000017 BTC to 0.000156 BTC. This is a massive 11,473% increase, indicating strong speculative interest or major buying activity during those periods. DOGE/USD v DOGE/BTC weekly chart | Source: Trading View Both charts revealed that Dogecoin’s price dynamics in USD closely mirrored those of BTC. Movements in one can be predictive of the other. – Advertisement – Currently, the DOGE/BTC pair exhibited a recovery pattern. If it continues, it could indicate an impending rally in the DOGE/USD pair as well. The potential for a future rally seems plausible if these historical correlations hold. However, the converse scenario—where the pattern deviates, possibly due to broader market changes or diminishing speculative activity—could see the pairs diverge. It would mean either stagnating or further declining prices, particularly if BTC strengthens independently of altcoins like Dogecoin. Bearish Crossover Signals a DOGE Correction However, analysis of Dogecoin’s MVRV Ratio, with the MVRV’s 30-day simple moving average (SMA) serving as a comparative baseline, showed potential correction ahead. Historically, the MVRV Ratio peaks have closely mirrored Dogecoin’s price spikes. So investor profitability was at its highest during these times. Conversely, when the MVRV ratio falls below its SMA, it historically indicated a decline in price. This means reduced profitability and potentially initiating a sell-off. Recently, DOGE saw a bearish crossover between the MVRV Ratio and its 30-day SMA, indicative of an impending price correction. DOGE…
Filed under: News - @ February 2, 2025 8:10 pm