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

Dogecoin Shows Signs of Recovery After Market-Wide Decline

Dogecoin (DOGE) experienced a significant decline in its Market Value to Realized Value (MVRV) ratio during the recent market downturn. However, this trend has reversed over the last 24 hours, indicating a potential rebound.

Analyzing Dogecoin's MVRV

According to Santiment, Dogecoin's 30-MVRV reached a low of -19.7%, suggesting an undervaluation or potential oversold condition. However, this metric has since recovered to approximately 13.6%, indicating a shift in sentiment.

Traders and investors may be seizing the opportunity to purchase DOGE at perceived low prices, reflecting renewed confidence in its potential value growth.

Dogecoin's Price Upturn

AMBCrypto's analysis reveals a modest price increase for Dogecoin over the past 24 hours. It rose by approximately 0.6% on June 5th and currently trades at around $0.107, reflecting an increase of over 2%.

Additionally, Dogecoin's Relative Strength Index (RSI) has risen slightly above 30, indicating a minor recovery on the charts and a shift away from the previous oversold condition.

While Dogecoin still exhibits bearish tendencies, the recent uptick in buying interest and the recovery in its technical indicators suggest a potential easing of downward price pressure.