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

• The price of DOGE has increased significantly in the last 24 hours
• Traders saw the recent decline as a buying opportunity

Due to the recent market-wide decline, Dogecoin (DOGE) saw the sharpest decline in its 30-day market value to realized value (MVRV) ratio. However, this was not the case at press time. In fact, there was a notable shift in the last 24 hours, and DOGE too showed signs of recovery.

Analysis of the MVRV of the Memecoin

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

This metric, which compares an asset’s market value to its realized value, indicated a significant drop in DOGE’s valuation. The drop comes compared to the average purchase price over the past month. This can often be seen as an indication of a possible undervaluation or oversale of the asset.

DOGE’s MVRV in the last 24 hours

However, the last 24 hours have seen a significant reversal in the above metric, with the MVRV ratio for DOGE rising to around 13.6%.

This positive change could be a sign of a recovery in valuation, possibly due to continued buying interest.

Source: Santiment

Traders and investors could benefit from the perceived low prices, indicating renewed confidence in the asset’s potential appreciation.

Dogecoin experiences a slight recovery

Finally, AMBCrypto’s recent analysis of Dogecoin revealed a slight increase in price over the past 24 hours. On June 5, DOGE was trading at around $0.105, up about 0.6%. At the time of writing, it was trading at around $0.107, up a more significant 2%.

In addition, the memecoin’s Relative Strength Index (RSI), an important indicator of market momentum, also recorded an important result.

The RSI had previously fallen below 30, indicating that DOGE was oversold. 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 slight recovery in the charts.

The movement of the RSI could suggest that while Dogecoin is still showing signs of a bearish trend, there has been a subtle shift towards recovery, especially as buying interest is increasing across the board. This could alleviate some of the downward pressure on the price.