Dogecoin’s flat NVT rate suggests undervaluation due to price surge! What’s next for DOGE pricing?
As Bitcoin recently soared to the $64,000 level, the meme coin market is growing significantly. Of particular note is Dogecoin, which broke through the resistance channel and recently reached the highly anticipated $0.1 milestone. However, according to the latest on-chain analysis, there may be more room for meme coins to grow, as despite their surge, there are significant indicators that point to undervaluation.
DOGE’s NVT Ratio Decrease Due to Spike in Price
Over the past 24 hours, the cryptocurrency market has seen a notable rebound from the recent plunge, resulting in the liquidation of positions worth nearly $280 million. This recovery in the market price was triggered by increased accumulation near the support line among holders. What is particularly notable is that approximately $50 million in short positions were liquidated within 12 hours, with Dogecoin facing liquidations exceeding $3 million, with sellers accounting for approximately $2.2 million of this total.
Nevertheless, despite the price of Dogecoin currently trending upward, several on-chain indicators suggest that this surge alone may not be enough as the price of DOGE is poised for further gains. According to IntoTheBlock data, the NVT ratio is decreasing and currently sits at 14.87.
This means that despite the recent increase in network value, transaction volume continues to increase along with the increase in network value. This demonstrates investor confidence and a surge in activity surrounding DOGE price, suggesting that there is potential for further gains to come. top of form
On the other hand, Dogecoin’s MVRV ratio (market value to realized value) has soared and is currently at 1.4. This indicates that the market value of Dogecoin is exceeding its realized value, which represents its value at the last transaction. This has occurred as long-term holders have become increasingly confident and reluctant to liquidate their current positions. While buying confidence is rising, there is a possibility that STH may begin a correction.
What’s next for DOGE pricing?
Efforts by sellers to force Dogecoin back into a symmetrical triangle pattern faced resistance from buyers, leading to a bounce off the 20-day EMA trendline. The current value of Dogecoin is $0.126, down more than 0.82% from yesterday.
The 20-day exponential moving average (EMA) has surged to $0.115 and is currently following an upward trajectory along with the overbought relative strength index (RSI) level. This suggests a bullish dominance among DOGE traders.
If Dogecoin stays above its moving average, it could break the immediate resistance at $0.135. However, there are concerns that the downturn could slow upward momentum. If DOGE price fails to break above $0.135, selling pressure could surge and target a retest of $0.1.
Conversely, if buyers succeed in pushing the price above $0.135, the next resistance for DOGE price will be around $0.17.