Dogecoin (DEGE) lost 25 %in the last week, decreasing to the lowest level of two months. This sharp decline shook the investor confidence and increased the likelihood of the price in the short term. However, there is also a chance to recover if appropriate market conditions occur.
Dogecoin: Emotional decline and sales pressure
Dogecoin’s predominantly market sensitivity passed to the negative area. Investors are more cautious due to recent price decreases and weak recovery signals. This may lead to the abandonment of the DEGE owners and an increase in sales pressure.
Furthermore, as the market uncertainty increases, the number of active addresses in the Dogecoin network and liquidity may decrease. Historically, long -lasting negative sensitivity periods resulted in a decrease in network participation and the horizontal movement of the price. If this trend persists, it can be difficult to recover in the short term of Dogecoin.
Price levels and MVRV ratio
The market value-realized value (MVRV) ratio points to a potential purchase opportunity for Dogecoin. This metric, which is currently at -23%, is below the historical recruitment opportunity (-9% to -21%). The past cycles took place from these levels.
Investors wishing to purchase at lower prices can benefit from existing market conditions. If the accumulation movement increases, Dogecoin can gradually recover and support with new receivers. This can help the price again gain a upward momentum.
Dogecoin critical levels and price analysis
Dogecoin is currently trading for $ 0.248 and is trying to find support from this level. If the drop pressure continues, the price has a risk of decreasing up to $ 0.220. It is vital for maintaining this level and the price of the price.
The price of $ 0.268 in the price may be the beginning of recovery. If this level is exceeded, a rally can occur up to 0.311 dollars. Such a movement invalidates the existing appearance and allows Dogecoin to compensate for the losses. Investors should closely follow the price movements of Dogecoin in the coming days. Developments in support and resistance levels will continue to determine the direction of the price.
