Dogecoin MVRV Hits Critical Zone—DOGE Surged 400% Last Time This Happened
Dogecoin’s Market Value to Realized Value (MVRV) ratio just punched through a key historical level—the same one that preceded its 400% moonshot last cycle. Meme coin or not, traders are eyeing the charts.
Why it matters: MVRV measures profit-taking pressure. When it flips bullish, retail FOMO often follows. And let’s be honest—nothing moves markets like a dog-themed coin and a whiff of past glory.
The cynical take: Wall Street still scoffs, but hey—they also missed Bitcoin at $65. DOGE might be a joke, but 400% gains? That’s punchline even hedge funds would cash in on.
Is A Sustained Bull Run On The Cards For DOGE?
In an April 26 post on the X platform, pseudonymous crypto analyst Cryptollica posited that the price of Dogecoin could be gearing up for an extended bullish period over the next few weeks. This projection is based on the changes in the MVRV metric, which tracks the ratio of a coin’s market cap to its realized cap.
The MVRV ratio basically tells how much value the investors hold (the market cap) against the value they put in (the realized cap). Hence, when the value of this metric is greater than 1, it means that more investors are in profit at the moment. Meanwhile, a less-than-one value implies that most of the market is in the red.
As such, a high MVRV ratio is generally viewed as a price top signal because investors show more propensity to offload their assets when they are in profit. On the flip side, when the metric is below the “1” threshold, it suggests that the market might be bottoming out.
As observed in the chart above, the Dogecoin MVRV ratio seems to be thickening in and around the “1” threshold level. Besides its on-chain significance, this level has proven pivotal in certain trend reversals seen in the past, with the Doge price bouncing back to a new local high each time the MVRV ratio persists around this mark.
The price of Dogecoin surged by 1,900% and 2,200% in August 2017 and August 2020, respectively, when the MVRV ratio was at its current level. The last time it was around this level in August 2024, the DOGE price rallied by more than 400% to surpass $0.5.
Going by the historical precedent, there is a likelihood that the DOGE price could be preparing for a significant upward movement. Considering the improving market climate, a sustained bullish run might not seem completely out of the question anymore at this point.
Dogecoin Price At A Glance
After briefly touching the $0.19 mark in the early hours of Saturday, April 19, the DOGE price appears to have cooled off. As of this writing, the price of DOGE is hovering around $0.18, reflecting a 0.3% decline in the past 24 hours.
