Bear Signal Lingers On Dogecoin—Here’s Why That’s Bullish
Dogecoin's Market-Value-to-Realised-Value (MVRV) Z-Score is at 0.28, indicating a capitulation phase rather than euphoria, despite the price rising to approximately $0.17 with a market cap of $26 billion. The current price trend shows higher highs and lows, but the MVRV score remains at bear-market levels. Previous cycle tops had Z-Scores of around 11 in 2017 and 16 in 2021, while the current peak is only 3.5. The restrictive monetary policy from the Federal Reserve and European Central Bank (ECB) is impacting altcoin performance, with Fed rates held steady and ECB rates recently cut to 2%. MVRV analysis indicates that while Dogecoin's price has increased significantly since 2022 lows, the average holder is not experiencing substantial profits. Future Fed cuts are anticipated, but no new asset purchases are planned. The potential for Dogecoin's growth hinges on a shift in global liquidity, which is not expected soon. As of the latest data, DOGE trades at $0.17387.
