strong buy
Dogecoin's Bullish Potential Hidden Behind Bearish Signal
Dogecoin’s Market-Value-to-Realised-Value (MVRV) Z-Score is currently at 0.28 – a level generally linked to capitulation, not market euphoria. Despite this, the cryptocurrency continues to set higher highs and higher lows on the weekly chart, trading near $0.17 with a market cap around $26 billion. This contrast highlights a situation where on-chain sentiment remains lethargic, but spot bids are resilient. Kevin, an analyst, noted that previous cycle peaks had MVRV Z-Scores of around 11 in 2017 and 16 in 2021, whereas the present has only reached 3.5, indicating that Dogecoin has yet to experience a true bull run. The current delay in altcoins outperforming Bitcoin can largely be attributed to restrictive monetary policy. Expectation is for policy shifts that could positively influence the altcoin sector later.
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AI Analysis
The recent analysis of Dogecoin indicates a fascinating divergence between on-chain sentiment and market price action. The low MVRV Z-Score of 0.28, typically associated with capitulation phases, cont...
AI Recommendation
Given the current low MVRV Z-Score and rising prices, it might be prudent for investors to adopt a cautious bullish stance. While the macroeconomic backdrop remains restrictive, signs of easing could ...
Disclaimer
The AI analysis and recommendations provided are for informational purposes only. Any investment decisions should be made at your own risk. Past performance is not indicative of future results. Always conduct your own research and consider consulting with a financial advisor before making any investment decisions.
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