The crypto community now watches Dogecoin closely because analyst Ali Martinez detected a bearish trend that might send its price down by 40% soon. On Monday Martinez showed investors that DOGE MVRV formed a death cross pattern with its 200-day moving average which typically leads to big market declines.
The analysis, sourced from Santiment, tracks three key metrics: DOGE/USD price, DOGE’s MVRV ratio, and the 200-day MVRV Ratio MA. In his analysis Martinez points out the previous two times the indicator appeared DOGE lost 26% and 44% value.
Dogecoin Needs $0.44 to Rebound
The current bearish pattern with the MVRV metrics emerges when the MVRV ratio crosses beneath the 200-day MA following earlier market downturns. Historical data supports this outlook. The market dropped 26% from September to October 2023 and 44% from June through September 2024 as the last two crossover events unfolded.
The cryptocurrency market downturns caused Dogecoin to hit its lowest point before experiencing recovery. DOGE trades at $0.268 while the MVRV ratio shows 91% and the 200-day MVRV ratio moving average stands at 78.36%. The MVRV ratio tells us how accurately Dogecoin holders will earn money or lose money according to their original purchase costs.
Investors tend to sell their positions when they hold large profits in their cryptocurrency assets. A death cross in the 200-day MVRV MA shows investors are changing their attitude towards the market and suggests growing downside concerns. The token DOGE continues showing signs that investors should expect lower prices.
After reaching $0.4834 on December 8 the cryptocurrency generated lower top values and lower bottom values which formed a downtrend. The market will shift when trading rises above essential support points according to Martinez.
To start moving upwards again DOGE must pass $0.44 yet three major resistance points stand in its path $0.31, $0.342, and $0.375 follow Fibonacci retracement levels. Investors continue to monitor DOGE trading as it stands at $0.26 since market participants await positive signals for market turnaround.
