- Dogecoin needs a strong escape to reverse its dominant downward trend
- The MVRV ratio to -11.69% alluded to the undervaluation, but a sustained purchase pressure may be necessary for a momentum upwards
Mastiff (Doge) had trouble regaining its place after taking a significant blow during the last negotiation session. In fact, the price remains trapped in a downhill channel, facing rigorous levels of resistance which must be broken before any substantial recovery can take place.
Analysis of recent levels of support and resistance can give us some information about the fact that DOGE can set up a return or not.
Key support and resistance areas
At the time of writing Mastiff was negotiated at $ 0.244, up 2.12% in the last 12 hours. However, his last recovery attempt was faced with high resistance near the level of $ 0.262, which aligned with the Fibonacci trace level of 0.236.
Above this, the next critical obstacle was at $ 0.274, where the level of fibonacci of 0.382 seemed to be positioned. A rupture beyond this beach could see Doge trying to recover $ 0.284 – aligned with the Fibonacci trace level at 50%.
Source: tradingView
Lowering, the support was formed around $ 0.238, preventing other drops for the moment. If Doge does not hold this level, the next key support would be $ 0.220 – a psychological barrier that traders will monitor closely.
Dogecoin trend channels indicate a lower bias
The action of DOGE prices seemed to be limited in a descending trend channel, a structure which ensured resistance to upward eruptions.
The 50 -day mobile average of $ 0.271 continued to act as a dynamic resistance, strengthening the lower bias. In addition, the 200 -day mobile average of $ 0.348 was much higher than the price of the press – a sign that a long -term bullish overthrow could take time.
Sensation of the market and MVRV information
Finally, Doge Market value with the value achieved (MVRV) The report in the last 30 days has revealed a reading of -11.69%. This suggests that assets can still be undervalued in relation to historical standards.
Source: Santiment
Although this can indicate a potential purchase opportunity, this could also indicate the wider market hesitation to push higher from Dogecoin. If the purchase of momentum does not climb, Doge could continue its movement linked to the beach.
What is the following for Dogecoin?
For Mastiff To get out of its current downward trend, it must recover $ 0.274 as a key pivot area. A sustained movement above this level could open the door to a rally to $ 0.30 and beyond. Conversely, non-compliance with the support at $ 0.238 could see DOGE slide towards $ 0.220 or even lower.
The feeling of the market is always cautious, traders should keep an eye on the volume and overall conditions of the market before making decisive movements. The next few days will be crucial to determine if Doge can resume the momentum or if other disadvantages are waiting.