icon_install_ios_web icon_install_ios_web icon_install_android_web

Dogecoin (DOGE) Price Prediction: Is a 40% Correction Looming?

Analysis9mos agoUpdate 6086cf...
261 0

In Brief

  • Dogecoin’s holder base stabilizes, but on-chain metrics signal potential for a 40% price correction.
  • A minimal increase in holders suggests possible price stabilization or correction amid stagnant growth.
  • A surge in MVRV Z Score and bearish EMA indicators hint at a looming downtrend.

The Dogecoin (DOGE) holder base has become stable during the last few weeks, and its on-chain and price metrics have recently raised red flags for investors. These metrics could soon lead to a 40% correction in DOGE price.

Will the DOGE community be able to hold the line, or is a bearish trend on the horizon?

Dogecoin Number of Holders Remains Stable

DOGE holder base surged by over half a million in just two weeks during February. On February 2, the number of holders reached a new high of 6.5 million, representing a nearly 10% increase from 5.82 million on January 28.

DOGE price followed that growth, from $0.081 to $0.195 between February 10 and March 4. However, the number of holders became stable after all that growth.

Dogecoin (DOGE) Price Prediction: Is a 40% Correction Looming?
DOGE Price and Number of Holders. Source: Santiment.

Between March 7 and March 12, the number of DOGE holders grew by roughly 100,000, reaching 6.57 million. While 100,000 might seem significant for other coins, this represents a minimal increase of only 0.15%. Recently, DOGE price growth has been strongly correlated with substantial growth in the number of holders. Since this number has stagnated in the past week, it could lead to price stabilization or a correction.

DOGE MVRV Sees Rapid Spike

A dramatic rise in the MVRV Z Score from 0.062 to 1.40 over just two weeks for DOGE signifies a potential case of overvaluation. This is the biggest MVRV Z-Score for DOGE since November 2021. That time after reaching those levels, DOGE price corrected by almost 50% in the next month.

Dogecoin (DOGE) Price Prediction: Is a 40% Correction Looming?
DOGE Price and MVRV Z-Score. Source: Santiment.

Imagine the MVRV Z-Score as a thermometer gauging how “hot” or overvalued an asset is compared to its historical average price. A score of 0.062 suggests DOGE was slightly on the warm side but not burning up. However, the significant jump to 1.40 indicates the temperature has risen dramatically.

Generally, a high MVRV Z-Score is seen as a sign that a correction might be looming. This means the price could drop to reflect its historical value better. In simpler terms, DOGE might be due for a price decrease based on this metric.

DOGE Price Prediction: Bearish Signs Ahead

Analyzing DOGE Exponential Moving Averages (EMA), it’s clear that recently, the long-term EMA (200 days) crossed above the more short-term EMA lines, the so-called Death Cross. Also, the DOGE price line is currently below the long-term EMA lines. Usually, this suggests a possible downtrend or dominance of bearish sentiment.

Dogecoin (DOGE) Price Prediction: Is a 40% Correction Looming?
DOGE Price, EMA, and Support and Resistance. Source: Tradingview.

However, DOGE has a strong historical correlation with BTC and ETH. If these two coins continue to rise, DOGE price could return to $0.20 and above soon, even with bearish metrics.

Given the stable number of holders and the rise of MVRV Z-Score, alongside the recent move of EMA lines, the DOGE price could test the $0.16 support zone soon. If it’s unable to resist it, it could decline further to $0.12 or even $0.10, a 40% correction.

This article is sourced from the internet: Dogecoin (DOGE) Price Prediction: Is a 40% Correction Looming?

Related: How a Crypto Whale Purchase of 2.74 Million Chainlink (LINK) Will Impact Prices

In Brief Crypto whales have accumulated 2.74 million Chainlink tokens, valued at nearly $49.9 million, impacting prices. The accumulation has been executed through 49 new wallets, with one notable wallet withdrawing 494,957 LINK. Overcoming a resistance band between $19.40 and $20.03 could potentially increase LINK’s valuation by 38%. Crypto whales have grabbed the community’s attention by accumulating an astounding 2.74 million Chainlink (LINK) tokens, valued at nearly $49.9 million. This action is part of a wider trend. Chainlink is key in providing secure data feeds for smart contracts on blockchains. Hence, it draws significant interest from retail and institutional investors alike. Crypto Whales Accumulate Chainlink According to the on-chain analytical platform LookOnChain, Chainlink’s significant accumulation has been executed through 49 new wallets. “This mysterious whale/institution withdrew 2,745,815 LINK ($49.9 million)…

 

© Copyright Notice

Related articles