- Dogecoin repeats similar MVRV pattern when prices near highs.
- Propietary Indicator breaks out, thus the DOGE correction could be short-lived.
Dogecoin [DOGE] continues to be a force in the memecoin market as it exhibited cyclical patterns on the market value to realized value (MVRV) ratio chart.
Historically, each surge in DOGE’s MVRV suggested overvaluation, followed by retracements, especially when prices neared all-time highs. Recently, the MVRV ratio again approached these higher levels.
Peaks in early 2014, late 2017, and early 2021 were met with sharp declines, aligning with corrections post-hype phases.
Source: Santiment
Post-retracement periods entered phases of consolidation, laying the groundwork for the next uptrend.
The patterns have held as DOGE’s correction before potentially climbing higher is in play. This suggested a repetitive cycle of hype.
DOGE prediction and profitability
DOGE was in a corrective phase with repeated tests of the resistance level around $0.49, failing to break above it. Each attempt to break higher was followed by retracements, confirming resistance strength.
The price drops highlighted liquidity sweeps below the $0.39 mark, where market players likely captured available buy orders before pushing the price slightly up again.
The strong demand zone around $0.36 led to rebounds after touches, suggesting accumulation activities.
