Dogecoin MVRV Ratio Forms Death Cross, Signals Potential Price Decline
Crypto analyst Ali Martinez has raised concerns for Dogecoin (DOGE) holders following the formation of a "death cross" in the Market Value to Realized Value (MVRV) ratio, which could signal upcoming price declines.
Key Points
- The MVRV ratio has crossed below its 200-day moving average (MA), historically linked to significant price drops.
- Previous instances of this crossover led to DOGE price decreases of 26% and 44%.
- DOGE currently trades around $0.268, with an MVRV ratio of 91% and a 200-day MVRV MA at 78.36%.
- A high MVRV ratio indicates substantial unrealized gains among holders.
- Dogecoin has been in a downtrend since reaching a high of $0.4834 on December 8, forming lower highs and lows.
- A breakout above $0.44 is needed to shift momentum, facing resistance levels at $0.31, $0.342, and $0.375.
