Rare Indicator Hints $1 Dogecoin Price Is Inevitable In November?

by

As a seasoned crypto investor with a knack for spotting trends and deciphering charts, I find the recent analysis of Dogecoin’s potential to reach $1 this month intriguing. The MVRV Z-Score, though less popular, has proven to be an effective indicator in the past, suggesting that DOGE still has room to rise.

Over the past day, Dogecoin‘s price has dropped by approximately 12.2%, following its peak at a yearly high of $0.4346. Despite this dip, an unusual signal on the Dogecoin chart hints that the meme currency could potentially reach $1 in November. This would represent a significant increase of around 170% from its current price of $0.3679. Will Dogecoin manage to achieve such heights and break into the realm of one-digit prices this month?

Rare Technical Indicator Signals Major Dogecoin Breakout

As an analyst, I’ve noticed that the less commonly employed on-chain metric known as Market Cap to Realized Cap (MVRV) suggests potential for Dogecoin’s price growth. This MVRV Z-Score, which compares the standard deviation between market value and realized value, helps in identifying significant market peaks and troughs for DOGE. In simpler terms, it seems that the DOGE price could still climb higher based on this indicator.

Two years ago today, the Dogecoin price reached its lowest point, as per this measurement, and since then, it has experienced a rise. Traditionally, figures above 5.38 suggest the price is overvalued, while values below -0.25 indicate the price was undervalued.

At present, the Dogecoin MVRV Z-score stands at 2.7 and is trending upward. This implies that although Dogecoin is getting close to being overpriced, there’s still potential for further growth, possibly driving the price up towards $1 and potentially beyond this level.

DOGE Price Surge: Is a $1 Target Achievable This Month?

The current price of Dogecoin stands at approximately three-fourths (3/4) short of reaching the $1 milestone, but on-chain indicators hint that this goal could be attained in the present month.

Despite the Relative Strength Index (RSI) being overbought at 83.85, the Average Directional Index (ADX), an indicator of market volatility, is presently at 26 and climbing. Typically, when the ADX exceeds 25, it indicates heightened market volatility, which often signals further price growth.

According to crypto expert Ali Charts, although in the past the price of Dogecoin typically peaked when the MVRV (Market Value to Realized Value) ratio reached 78%, today’s price drop has brought the MVRV down to 45.65%. This lower value indicates that there is potential for Dogecoin prices to increase further.

Key Resistance Levels Dogecoin Needs to Break for $1

The current price of Dogecoin shows a significant “cup and handle” pattern on its 1-week chart. Typically, such patterns suggest a potential bullish reversal, implying that the value of Dogecoin could potentially reach approximately $1.5 before encountering a strong resistance level.

Yet, during its upward journey, Dogecoin might face resistance at approximately $0.5 and $0.76, these levels aligning with its earlier record peak.

From my perspective as a researcher, if the bearish trend continues, there’s a possibility that the Dogecoin (DOGE) price could drop down to approximately $0.35. However, should it fall below this point, the previously established resistance at $0.2 is now acting as strong support and may help counteract intense selling pressure, preventing any further significant decline.

Should the price dip under $0.2, the existing bullish argument could be disproven, suggesting that Dogecoin might transition into a bear market according to its predicted trends.

The price of Dogecoin is temporarily pulling back for a break, preparing for another potential surge ahead. Following the publication of a notice appointing Elon Musk and Vivek Ramaswamy as heads of the Department of Government Efficiency (DOGE), investors are keeping a keen eye on the DOGE price, as it may surge towards $1.

Read More

2024-11-13 10:06