- Dogecoin’s MVRV Ratio signals risks with a bearish crossover below the 30-day SMA.
- Prices struggle to hold key levels, suggesting a weak outlook for Dogecoin.
- Traders should stay cautious as Dogecoin shows potential for further price decline.
Dogecoin, the popular meme cryptocurrency, is facing strong bearish signals following a development in its on-chain metrics. Ali, a respected analyst in the crypto space, highlighted this shift on February 2, 2025, in his analysis on social media, which has since garnered substantial attention with over 46,000 views.
Bearish Crossover Signals Potential Decline
According to Ali, Dogecoin’s Market Value to Realized Value Ratio has undergone a bearish crossover with its 30-day Simple Moving Average . This crossover typically signals an overvalued state for an asset and suggests a steep price correction may be imminent.
The MVRV Ratio is an important metric in evaluating the relative value of a crypto. It compares the current market price to the average price at which tokens were last moved. A drop in the MVRV Ratio below its SMA often indicates that profit-taking is likely, as investors who bought at higher prices may start selling.
Recent Price Action
The chart provided by Santiment reveals that Dogecoin recently attempted multiple recoveries after sharp declines in December 2024 and January 2025. Despite these attempts, the price struggled to hold above key Fibonacci retracement levels. The MVRV Ratio’s bearish shift aligns with Dogecoin’s inability to sustain bullish momentum, hinting at potential downside ahead.
The price action shows Dogecoin fluctuating between key Fibonacci levels of 76.1% and 140%, indicating weak buying pressure. The lack of sustained recovery reflects investor hesitation amidst growing bearish sentiment.
Community Reaction
Ali’s analysis has spurred discussions among Dogecoin enthusiasts and traders. Comments on his post highlight concerns about the asset’s short-term trajectory. One notable reply humorously noted, “It’s over for Doge,” reflecting the growing apprehension among some investors. Others inquired about Ali’s price target for Dogecoin, seeking further clarity on what lies ahead.
Broader Implications
The bearish MVRV crossover could also have implications beyond Dogecoin’s immediate price movements. As the broader crypto market remains sensitive to sentiment-driven trends, any sharp correction in Dogecoin could trigger ripple effects across altcoin markets, particularly among meme coins.
Dogecoin’s recent bearish signals should serve as a cautionary note for traders. With the Ratio dipping below the 30-day SMA and prices struggling to regain momentum, the path ahead may involve further downside risks. Investors are advised to monitor key support levels closely and stay informed about on-chain as they unfold.
