Dogecoin (DOGE) Price Prediction: This Crucial Support Must Hold

Dogecoin (DOGE) price has risen by 27% over the past month, leading meme market gains. Interestingly, despite the double-digit price hike, a key

Dogecoin (CRYPTO: DOGE) price soared by 27% over the past month, spearheading gains in the meme market. Despite the double-digit price hike, a key on-chain metric signals that the meme coin remains undervalued, presenting a buying opportunity for market participants.

If demand strengthens, Dogecoin’s price may extend its gains in the near term. Here is why.

Dogecoin Flashes Buy Signal

Indicating that the altcoin is still undervalued, Dogecoin’s market value to realized value (MVRV) ratio, which measures the overall profitability of all its holders, shows that the coin remains undervalued despite the 27% spike in its price over the past month.

As of this writing, the coin’s 60-day MVRV ratio is -8.18%. A negative 60-day MVRV ratio indicates that Dogecoin’s current market price is below its average over the past 60 days.

Negative MVRV ratios are usually interpreted as a buying signal by traders. They suggest that the asset is being traded below its historical acquisition cost on average, presenting a buying opportunity for traders looking to “buy low” and “sell high.”

This bullish indicator appears to be having an impact on traders, as DOGE’s spot market recorded its first net inflow in seven days. According to Coinglass data, the inflow into the meme coin’s market on Friday totals $2 million. This comes after seven consecutive days of spot market net outflows, which crossed the $35 million mark.

Spot inflow is a bullish signal, indicating that investors are optimistic about Dogecoin’s mid/near-term prospects and are willing to hold it as an asset.

DOGE Price Prediction: This Crucial Support Must Hold

At press time, Dogecoin is trading close to the crucial support level of $0.137. With increased inflow into its spot market, bulls are positioned to defend this price point, potentially setting off an uptrend if demand strengthens.

Further bolstering the coin’s bullish sentiment is its bull-bear power (BBP) indicator, which measures buying and selling pressure in the market. Currently, the BBP sits at 0.0033, indicating bullish momentum. When this indicator is positive, the bulls control the market.

If bulls maintain their grip, they could propel Dogecoin’s price towards the resistance level at $0.154. A successful breakout above this threshold would allow the meme coin to reach $0.172, a high not seen since May.

However, if demand wanes and the $0.137 support level fails to hold, Dogecoin’s price could drop significantly towards $0.112.