Dogecoin Needs a Strong Breakout to Reverse its Declining Trend

• MVRV Ratio at -11.69% hints at undervaluation, but sustained buying pressure may be required for upward momentum.

Dogecoin (DOGE) has struggled to regain its footing after a significant hit in the last trading session. The price remains trapped within a descending channel, facing stiff resistance levels that must be broken for any substantial recovery.

Key Support and Resistance Zones

As of now, Dogecoin was trading at $0.244, up by 2.12% in the last 12 hours. However, its latest attempt at recovery faced strong resistance near the $0.262 level, aligning with the 0.236 Fibonacci retracement level.

Above this, the next critical hurdle is at $0.274, where the 0.382 Fibonacci level is positioned. A break beyond this range could see DOGE attempt to reclaim $0.284, aligning with the 50% Fibonacci retracement level.

On the downside, support has formed around $0.238, preventing further declines for now. If DOGE fails to hold this level, the next key support would be at $0.220—a psychological barrier that traders are watching closely.

Dogecoin Trend Channels Indicate Bearish Bias

DOGE’s price action is constrained within a descending trend channel, providing resistance to bullish breakouts. The 50-day moving average at $0.271 continues to act as dynamic resistance, reinforcing the bearish bias. Additionally, the 200-day moving average of $0.348 is far above the current price, indicating that a long-term bullish reversal may take time.

Market Sentiment and MVRV Insights

DOGE’s Market Value to Realized Value (MVRV) ratio over the past 30 days revealed a reading of -11.69%, suggesting the asset may be undervalued compared to historical norms. While this could indicate a potential buying opportunity, it also points to the broader market’s hesitation in pushing Dogecoin higher. Without climbing buying momentum, DOGE could continue its range-bound movement.

What’s Next for Dogecoin?

For Dogecoin to break out of its current downtrend, it needs to reclaim $0.274 as a key pivot zone. A sustained move above this level could open the door for a rally towards $0.30 and beyond. Conversely, failure to maintain support at $0.238 could see DOGE slide to $0.220 or lower.

With market sentiment still cautious, traders should monitor volume and overall market conditions before making decisive moves. The coming days will be crucial in determining whether DOGE can regain momentum or if further downside awaits.