Dogecoin has taken a hit, dropping by 6.87% in the last day. But this dip might be a blessing in disguise.
Enter the Opportunity Zone
Dogecoin has entered a historically bullish zone, according to the MVRV ratio. This ratio compares the current market value to the total amount paid for coins in circulation. When the ratio is negative, like it is now at -13%, it suggests that Dogecoin is undervalued.
Historically, these negative MVRV periods have been followed by price rallies. For example, when Dogecoin dropped by 31% in March, the MVRV ratio fell to -15%. Shortly after, the meme coin surged by 78%.
What’s Next for Dogecoin?
As of now, Dogecoin is trading at $0.1168. The MVRV ratio suggests that a rebound could be on the horizon.
Support Level
Dogecoin is currently above a strong support level, where 41.81 billion tokens were bought at an average price of $0.106. If Dogecoin falls below $0.11, this support zone could prevent a further decline.
