Dogecoin Price Prediction as DOGE Drops 8% – Time to Buy the Dip?
Dogecoin price is exchanging hands at $0.1198 after losing 8% of its value over the last 24 hours. This $16 billion meme coin grew by over 100% in the past week amid an Elon Musk-triggered rally. Dogecoin proponents backed the rally in droves, compelling bullish forecasts to $1.
However, DOGE started giving up some of its gains before the $0.15 level. Meanwhile, Dogecoin price appears to be sitting on top of robust support, slightly above $0.1100. Overhead pressure will increase if holders choose to lock in the gains, but if that support holds, Dogecoin price could quickly resume its uptrend.
The entire cryptocurrency market is turning its attention to the upcoming Federal Reserve meeting, scheduled to take place on November 2. Market participants expect the regulator to continue tightening its grip on interest rates as it combats inflation. A 0.75% rate hike or, if you like, 75 basis points will likely mount more pressure on riskier asset classes like digital assets.
As for Dogecoin price, the risk could even be higher considering its massive rally from $0.0680, as discussed in this article on Sunday. Looking at the MVRV (Market Value Realized Value), an on-chain metric by Santiment, a trend reversal is already underway.
The MVRV tracks the profit or loss of DOGE holders by comparing the price at which the tokens last moved with their current market value. Any reading above one means the asset is considered overvalued, which introduces the risk of a retracement as investors sell to book profits. Therefore, with the MVRV hitting 36.69% - a trend reversal was a matter of when and not if.
Investor sentiment toward the most valuable meme coin in the market plunged significantly during the weekend as Elon Musk’s takeover news
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