Analyst Warns Of A 40% Drop
Crypto analyst Ali Martinez (@Ali_Charts) has reminded Dogecoin (Doge) holders that he shared a chart on Monday highlighting a noteworthy technical setup. According to Martinez, the market value of Doge’s Realized Value (MVRV) has just formed a “death cross” and its own 200-day moving average (MA) is an event previously associated with major price declines.
Dogecoin MVRV Death Cross Warning
Martinez’s chart comes from santiment, plotting three key data points: the price of the Governor/USD (black line), the MVRV ratio of the Governor (orange line) and the 200-day MVRV ratio of the Doge (red line) ). he Comment: “Doge just saw a death cross between the MVRV ratio and the 200-day MA. The last two happened, and the price dropped by 26% and 44%.
The newly printed “Death Cross” takes place in orange MVRV comparison The line is lower than the red MA line for 200 days. Analysts noted that Doge’s price made two major corrections after the same crossover: a 26% drop between early September and late October 2023 and a 44% drop from mid-June to late September 2024.
Related Readings
Both downturns appear in the shaded areas on the chart and are marked accordingly. After each of these drops, Dogecoin’s price will eventually rebound, but only after reaching a lower price level. Looking closely at the chart, the price of Dogecoin is shown at around $0.268. The MVRV ratio (orange line) climbed nearly 91%, while the 200-day MVRV ratio MA (red line) hovered around 78.36%.
The MVRV ratio compares Dogecoin’s current market value with the realized value (Doge’s total cost basis last mobile chain). The MVRV is 91%, indicating that on average, market participants may rise significantly relative to their purchase price – if the ratio remains above 1. Although the exact explanation depends on how the analyst applies the MVRV scale, the MVRV ratio is higher, but it usually means a higher MVRV ratio. Unrealized gains among holders.
Related Readings
The 200-day MVRV MA is a simple moving average of the MVRV ratios over the past 200 days. It provides a long-term baseline to evaluate the current MVRV of domycin above or below it Historical Trends. When the short-term MVRV ratio (orange line) moves for 200 days MVRV ratio (red line), a “death cross” (REATH LINE) occurs, which usually indicates a potential shift in emotions or an imminent selling pressure.
It is worth noting that dog prices are showing some Weaknesses in the past few weeks. Since its December 8 high to $0.4834, Doge has been writing down lower highs and lower lows, which is a very bearish chart setting. Martinez shared the following chart, statement: “The Governor maintains a downward trend, forming lower lows and lower highs. Breakthroughs beyond key resistance are needed to change momentum!”
To do this, Doge needs to be interrupted above $0.44. However, the Governor bull It is expected that obvious resistance can be expected at $0.31 (0.382 fibonacci reversal), $0.342 (0.5 fib) and $0.375 (0.618 FIB). At press time, Doge traded at $0.26.
Featured Images created with dall.e, Charts for TradingView.com
