Dogecoin – How its MVRV may have saved its short-term price action

• DOGE’s price appreciated significantly over the last 24 hours
• Traders saw the recent decline as a buying opportunity

On the back of the latest market-wide decline, Dogecoin (DOGE) recorded the most significant fall in its 30-day Market Value to Realized Value (MVRV) ratio. However, this wasn’t the case at press time. In fact, there has been a noteworthy shift over the last 24 hours, with DOGE showing signs of a rebound too. 

Analyzing the memecoin’s MVRV

According to Santiment, Dogecoin’s (DOGE) MVRV noted the most significant decline among nine assets. In fact, the 30-MVRV hit a low of -19.7% on the charts.  

This metric, which compares the market value of an asset to its realized value, pointed to a significant drop in DOGE’s valuation. The drop is in comparison to the average purchase price over the past month. Often, this can be seen as an indication of a potential undervaluation or that the asset might be oversold.

DOGE’s MVRV over the last 24 hours

Over the last 24 hours though, there has been a notable reversal in the aforementioned metric, with the MVRV ratio for DOGE climbing to approximately 13.6%.

This positive change might be a sign of recovery in valuation, possibly driven by sustained buying interest. 

Source: Santiment

Traders and investors might be capitalizing on perceived low prices, pointing to  renewed confidence in the asset’s potential value growth.

Dogecoin sees a slight recovery

Finally, AMBCrypto’s recent analysis of Dogecoin revealed a modest uptick in its price over the last 24 hours. On 5 June, DOGE was trading at around $0.105, having risen by approximately 0.6%. At the time of writing, it was trading at about $0.107, reflecting a more significant uptcik of over 2%.

Additionally, the memecoin’s Relative Strength Index (RSI), a key indicator of market momentum, recorded a major finding too.

The RSI had previously dipped below 30, signifying that DOGE was in an oversold condition. This is often considered a strong bearish trend. 

Source: TradingView

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However, at press time, the RSI had risen slightly above this critical threshold, indicating a minor recovery on the charts.

The RSI’s movement might suggest that while Dogecoin still exhibits signs of a bearish trend, there has been a subtle shift toward recovery. Especially as buying interest rises across the board. This could alleviate some of the downward pressure on its price.