Dogecoin (DOGE) Price: Recovery or Dead-Cat Bounce After 66% Drop?
TLDR
- Dogecoin price holds at $0.106 after rebounding from the October low of $0.095 reached over the weekend
- The 30-day MVRV ratio recovered to -14.40% from -20.80%, indicating DOGE may be undervalued with potential for a short-term bounce
- Over $600 million in long positions were liquidated during the weekend as Bitcoin fell below $80,000
- RSI indicator shows oversold conditions at 31, suggesting possible near-term recovery despite bearish primary trend
- Technical analysis reveals a falling wedge pattern that could lead to gains toward $0.119 or decline to support at $0.095
Dogecoin price sits at $0.106 on Tuesday following a slight recovery from weekend lows. The meme coin tested the October 10 low of $0.095 on Saturday before bouncing back.
Dogecoin (DOGE) Price
The weekend saw heavy liquidations across crypto markets. Data from CoinGlass shows over $600 million worth of long positions were wiped out during Saturday and Sunday. Bitcoin dropped below $80,000 during this period, retesting April 2025 lows.
DOGE experienced its third-highest liquidation event in 90 days on Friday. Around $22.3 million in long positions evaporated as the price fell to $0.10. The token has dropped 66% since October.
On-Chain Metrics Show Undervaluation
The Market Value to Realized Value metric suggests Dogecoin may be undervalued. The 30-day MVRV ratio stands at -14.40% on Tuesday, recovering from -20.80% on Saturday. These levels were last seen during the October 2025 US-China trade war correction.
Source: Santiment
The 7-day MVRV reads -1.16% on Tuesday, up from -8.52% on Saturday. Negative MVRV readings indicate holders are sitting on unrealized losses. Such conditions often signal potential buying opportunities.
Historically, DOGE has rebounded when MVRV ratios fall to similar levels. The negative readings suggest the token is trading below its realized value.
The long-to-short ratio for DOGE stands at 1.02 on Tuesday. A ratio above 1 shows traders are betting on price increases. This could provide support for recovery.
Technical Indicators Paint Mixed Picture
The Relative Strength Index sits at 31, just above oversold territory. This hints at a possible short-term bounce. The RSI recently hit oversold levels in the daily chart, typically a contrarian signal.
A falling wedge pattern has formed in recent price action. This is generally a bullish pattern that anticipates a reversal. The pattern could push DOGE toward the $0.20 level first, then potentially $0.30.
Source: TradingView
The Moving Average Convergence Divergence indicator showed a bearish crossover on January 17. This crossover remains intact and supports a negative outlook.
DOGE closed below weekly support at $0.119 on Thursday. The token declined over 11% in the following two days before reaching the October low.
If the recovery continues, DOGE could advance toward the weekly support at $0.119. However, the primary trend remains bearish. Any short-term recovery has a high probability of being a dead-cat bounce.
A dead-cat bounce refers to a brief price increase within a broader downtrend. Traders should remain cautious despite recovery signs.
If DOGE resumes its downward trend, it could extend the decline toward $0.095. A close below this level could push the price toward the next weekly support at $0.078. The $0.10 level serves as both technical and psychological support.
The post Dogecoin (DOGE) Price: Recovery or Dead-Cat Bounce After 66% Drop? appeared first on CoinCentral.
You May Also Like
SBI VC Trade Adds Litecoin to Japanese Lending Program
Work Dogs TGE Is Running — Is WD About to Drop in Q2 After March 30?
