Dogecoin price today: $0.1700
If Dogecoin regains the $0.1756 level, it could test the year-to-date high resistance level at $0.2288. Key technical and on-chain indicators suggest that DOGE may adjust following strong investor returns. DOGE could trigger a meme coin season as DOGE’s MVRV has reached levels last seen in May.
Following a massive rally over the past three days, Dogecoin (DOGE) rose over 8% on Tuesday. The surge in price could see the number one meme coin attempt to hit a new yearly high in the coming days.
DOGE needs to regain $0.1756 to target new year-to-date highs
DOGE is trying to sustain a long-term move above the $0.1756 resistance level. This sees the top meme coin enter a major rectangular channel after rising nearly 15% within a few hours. However, a negative reaction was seen near this level as selling pressure prevailed.
Since bouncing off its 100-day simple moving average (SMA) on Saturday, DOGE has gained 33%. Amid increasing buying momentum, Top Meme Coin has regained the $0.1756 level, and if it sustains the move above it, it could reach new yearly highs above $0.2288.
DOGE/USDT daily chart
However, the Relative Strength Index (RSI) has entered overbought territory, indicating a possible price correction.
DOGE on-chain indicators indicate possible correction
IntoTheBlock’s global money movement data also suggests a possible price correction. According to this metric, over 92% of DOGE’s total supply is profitable. If a large portion of a coin’s supply is in profits, investors may try to partially book profits, creating potential selling pressure on the asset.
DOGE Global Money In and Out (Source: IntoTheBlock)
Furthermore, DOGE’s market value to realized value (MVRV) ratio, which calculates the average return for all holders based on the last price each token moved, is at a five-month high of 77%. This means that all DOGE holders have seen an average increase of 81% on their initial investment. If MVRV is very high, it indicates the possibility of a price correction.
DOGE MVRV Ratio (Source: Satntiment)
DOGE’s MVRV is currently at levels last seen during meme coin season, which lasted until May, so investors are hoping for another meme coin mania.
Other top meme coins such as Shiba Inu (SHIB), PEPE, and dogwifhat (WIF) have also recorded notable gains, with the overall meme category increasing by more than 11%, according to CoinGecko data.
