Here’s Why Dogecoin is Expected to Experience a Double Digit Rise Soon
Dogecoin’s NVT ratio, which compares the network value to the transactional value, has been reaching all-time highs recently. This ratio has seen several spikes over the past year, and each time the price of DOGE has reacted in a similar pattern. When the NVT spiked, DOGE initially dropped in value, and then bounced back even higher.
For example, on May 23, 2022, when the NVT spiked, DOGE first depreciated by 44% but then rallied back by 58%. Similarly, on August 1, 2022, DOGE initially shed 8% of its value but then bounced back by 37%. This trend has been consistent, with each NVT peak triggering a drop in value followed by a stronger rise.
The latest NVT peak was registered on July 3, and since then, a downtrend has already begun on the daily timeframe. In previous instances, the downticks have ranged between 33% and 44%, while the uptrends have ranged from 37% to 58%. If history repeats itself, DOGE’s price can be expected to continue dropping over the next few days before eventually registering double-digit gains.
It’s important to note that this analysis is based on past trends and there is no guarantee that the same pattern will continue in the future. However, it provides insights into the potential price movements of DOGE based on its NVT ratio.
Overall, the current trend suggests that DOGE’s price may continue to decline in the short term before experiencing a significant increase in value. Investors and traders should keep an eye on the NVT ratio and closely monitor price movements to make informed decisions about their investments in DOGE.
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