Tag: MVRV

  • Dogecoin Price Analysis: Bearish Momentum Persists as DOGE Hovers Near Yearly Low

    Dogecoin Price Analysis: Bearish Momentum Persists as DOGE Hovers Near Yearly Low

    Dogecoin (DOGE) Struggles Near Yearly Low, Bears Dominate

    Dogecoin (DOGE) continues to face downward pressure, trading near its yearly low of $0.069. The token is currently at $0.07188, down 0.58% in the last 24 hours, and remains below all key moving averages, signaling weak momentum. The bearish sentiment is reinforced by derivatives data and technical indicators that suggest a prolonged recovery remains elusive.

    Derivatives Data Points to Widespread Bearish Sentiment

    According to CoinGlass data, DOGE’s long-to-short ratio has fallen to 0.7211, its lowest level in over a month. A ratio below 1.0 indicates that short positions outweigh long positions, reflecting traders’ expectations of further declines. Funding rates also turned negative at -0.003% on Friday, though they have since recovered to 0.067%. This negative funding rate historically suggests that short sellers are paying to keep their positions, a bearish sign.

    Additionally, spot Dogecoin ETFs have seen minimal activity in the past two weeks, offering no support to the token’s price during its recent drop.

    MVRV Ratio Drops Below 0.8, Historically a Bearish Zone

    DOGE’s Market Value to Realized Value (MVRV) ratio has fallen below 0.8, indicating that the average holder is sitting on unrealized losses. This level has historically appeared during periods of low market confidence, such as the accumulation phases before major rallies in 2017 and 2021. However, past behavior suggests that such zones can persist for extended periods without an immediate recovery.

    Technical Analysis: Resistance Levels and Key Support

    The nearest resistance levels are the 20-day EMA at $0.0765, followed by the 50-day EMA at $0.0819 and the 100-day EMA at $0.0893. The 200-day EMA at $0.1057 remains a significant hurdle for any bullish reversal. Since late June, DOGE has traded sideways between $0.071 and $0.078, suggesting buyers have not yet taken control.

    The Relative Strength Index (RSI) stands at 36.36, recovering from oversold conditions earlier in July but still well below the 50 midline. Trading volume increased by 26.74% to $365 million over the past 24 hours, hinting at heightened activity. For a bullish reversal, DOGE must reclaim the $0.0765 level, followed by a move above $0.082. On the downside, a break below $0.071 could expose the token to further losses toward $0.065.

    Frequently Asked Questions

    Why is Dogecoin price under pressure?

    Dogecoin remains under pressure due to its proximity to yearly lows, a lack of momentum, bearish derivatives data, limited ETF inflows, and low investor confidence.

    What does DOGE’s long-to-short ratio indicate?

    The long-to-short ratio of 0.7211 shows that short positions outnumber long positions, indicating traders expect further downside rather than a quick recovery.

    Why is the MVRV ratio below 0.8 important for Dogecoin?

    An MVRV ratio below 0.8 places Dogecoin in a historically stressed valuation zone. Similar levels preceded past accumulation phases, but recovery may take time.

    What resistance levels should DOGE reclaim?

    DOGE needs to reclaim the 20-day EMA near $0.0765, then the 50-day EMA around $0.0819. Clearing the 100-day EMA near $0.0893 would be a stronger bullish signal.

    What happens if Dogecoin falls below $0.071?

    A break below $0.071 would weaken the short-term structure and could lead to a decline toward the $0.065 support area.

    Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are risky; always conduct your own research (DYOR) before investing.

  • XRP Climbs to $1.11 as Ripple Boosts RLUSD Minting on XRP Ledger

    XRP Climbs to $1.11 as Ripple Boosts RLUSD Minting on XRP Ledger

    XRP rose 1.33% to trade near $1.11 within 24 hours, outperforming Bitcoin’s 0.61% increase and the broader crypto market’s 0.97% rise. The token maintained a 9.37% weekly gain, though declining trading volume indicated limited buying pressure.

    Market data points to a broad crypto recovery as the primary driver of XRP’s move. The token tracked the wider market but posted stronger gains. No clear token-specific catalyst appeared in the price data, while trading volume fell 16.26%. Traders are monitoring whether XRP can sustain support between $1.05 and $1.10 and test resistance near $1.15.

    XRP Outpaces Bitcoin as Volume Falls

    XRP’s daily gain placed it ahead of Bitcoin and the crypto market. The relative strength suggests selective demand, although the move still followed the wider market direction. The Altcoin Season Index also dropped to 46, indicating that capital has not strongly shifted into altcoins.

    The lower trading volume limits confirmation of the advance. A daily close above $1.12 could support a move toward $1.15, while a drop below $1.08 may signal weaker momentum. Bitcoin’s next move will also be critical, as a broad market decline could pressure XRP without a new coin-specific event.

    Ripple Expands RLUSD Supply on XRP Ledger

    Ripple increased RLUSD minting across the XRP Ledger (XRPL) and Ethereum, issuing a total of $291.6 million. Approximately $225.8 million, or 77%, was minted on XRPL, while Ethereum accounted for about $65.8 million.

    On July 1, Ripple minted roughly $169.8 million and burned $150,000, with nearly all issuance on XRPL. On July 2, the company minted $121.8 million and burned $68.1 million across both networks. After the two-day activity, XRPL recorded a net supply increase of $167.7 million, while Ethereum added about $55.75 million.

    The latest issuance followed a large XRPL burn at the end of June. Ripple burned about $146.3 million on June 30, producing a net supply drop of $136.1 million that day. Part of the July minting therefore replaced supply removed earlier rather than creating entirely new growth.

    RLUSD’s total supply now stands near $1.634 billion. XRPL holds about $844.5 million, or 51.7%, while Ethereum holds approximately $789.83 million, or 48.3%. The figures show a near-even split, with recent minting activity leaning toward XRPL.

    Santiment Flags Deep XRP Holder Losses

    Santiment reported that XRP’s 30-day market value-to-realized value (MVRV) ratio fell to its weakest level since December 2020. The data shows the average active trader down about 47%, placing many recent buyers in a deep loss position.

    The analytics firm said ‘fear and frustration’ had reached rare levels that previously appeared before rebounds. Still, Santiment added that ‘weak MVRV readings alone do not guarantee a reversal.’ The statement frames the data as a possible relief-rally setup, not confirmation of a durable recovery.

    Social sentiment has also turned more negative, with bullish and bearish commentary moving closer to balance. Such readings can reduce selling pressure when many holders already sit at a loss. However, XRP still needs stronger volume, stable Bitcoin trading and fresh market demand to confirm any wider rebound.

    Some market watchers are tracking a possible move toward $1.40 if XRP holds support and buying interest improves. The key levels sit near $1.05 on the downside and $1.15 on the upside, while a daily close above $1.12 could provide the first technical sign of stronger momentum.