Despite challenges, the broader altcoin sector shows resilience, with Dogecoin due to 8x Rally and recovering due to increased investor accumulation.
Key Takeaways
- Dogecoin experiences a 1.80% drop to $0.08479 post-spot Bitcoin ETF debut, accompanied by a 27% decrease in trading volume.
- Despite Dogecoin’s challenges, the broader altcoin sector, including meme coins, exhibits resilience and recovery fueled by increased investor accumulation.
- Crypto analyst CryptoCheck identifies a potential buy zone for Dogecoin between $0.078 and $0.084, with favorable risk-reward dynamics above $0.087.
- MVRV ratio surpasses 1, signaling buyers entering the market at lower valuations, contributing to a price rise.
Market Retraction of 8x Rally
Following the introduction of the spot Bitcoin ETF, the digital currency market experienced a mild retraction, with Dogecoin leading the descent with a 1.80% drop to $0.08479 in the past 24 hours.
The concern deepens as trading volume plunges by 27% to $609,330,772, indicating potential struggles for Dogecoin. Despite this, the broader altcoin sector, including meme coins like Dogecoin and Shiba Inu, displays resilience and recovery, driven by increased investor accumulation, as evidenced by on-chain data.
Analysis of Dogecoin’s Technicals
Crypto analyst CryptoCheck suggests that Dogecoin may have entered a buy zone despite recent challenges. Examining various time frames, including the four-hour and weekly, the analyst identifies a buy zone between $0.078 and $0.084. This analysis aligns with insights from crypto analyst Skew, indicating favorable risk-reward dynamics above $0.087 for potential investors.
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However, the MVRV ratio for Dogecoin has surpassed 1, indicating that buyers have entered the market when its market value was less than its realized value, contributing to a price rise. While Dogecoin attempted to rise above the 200-day exponential moving average at $0.09, it failed, suggesting that buyers are still active near the $0.081 mark.
To Conclude
A crypto analyst suggests that Dogecoin may have entered a buy zone, highlighting potential for a bullish trend. However, the MVRV ratio exceeding 1 indicates buyers entering the market at lower valuations, driving up prices.
The analyst predicts an 800% high for Dogecoin, citing community support and potential developments like Elon Musk’s X launching a peer-to-peer payments platform in 2024.
