Featured image created with DALL.E, chart from TradingView.com<\/div>\n","protected":false},"excerpt":{"rendered":"
Dogecoin (DOGE) has again found itself in the crosshairs of market watchers, with a \u201cblood in the streets\u201d moment emerging according to data from on-chain analytics firm Santiment. The firm\u2019s latest research, shared on January 8 via X, highlights a series of negative MVRV (Market Value to Realized Value) ratios across the crypto landscape\u2014encompassing Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), and Dogecoin. \u201cAverage trading returns are a great representation of whether \u2018buying low\u2019 or \u2018selling high\u2019 is actually the right timing,\u201d Santiment stated, stressing that current on-chain metrics point toward an environment where many crypto assets are sitting in oversold territory. \u201cWhen MVRV\u2019s are negative, this means a buy or addition to your holding is doing so while others are already at a loss. Historically, these \u2018blood in the streets\u2019 moments are when professional traders make money,\u201d Samtiment writes. The data Santiment published includes the 30-day MVRV ratios for four major assets as of January 8. Bitcoin\u2019s MVRV ratio is at -3.73%, Ethereum\u2019s at -7.71%, Cardano\u2019s at -6.69% and Dogecoin\u2019s at -8.89%. In simple terms, MVRV compares the total market capitalization of a cryptocurrency (its \u201cMarket Value\u201d) with the total cost basis of holders (its \u201cRealized Value\u201d). A negative MVRV often indicates that the average holder is currently underwater on their position. Related Reading: 70 Million DOGE Make Their Way To Binance Amid 10% Dogecoin Price Crash For Dogecoin, the -8.89% MVRV ratio suggests that\u2014on average\u2014investors who acquired DOGE in the last 30 days are sitting on notable unrealized losses. This contrasts with BTC\u2019s less pronounced -3.73%, indicating that Dogecoin\u2019s short-term holders are, on average, deeper in the red relative to Bitcoin\u2019s. Ethereum (-7.71%) and Cardano (-6.69%) also face negative territory, but their holders are faring slightly better than Dogecoin over the past month. Because DOGE\u2019s MVRV is the most negative among the four mentioned, there is potential for a stronger recovery bounce if market conditions stabilize. However, it also underscores higher risk if broader crypto sentiment remains fragile. As Santiment noted, traders often scan for negative MVRV as a potential opportunity to \u201cbuy low,\u201d but this is by no means a guarantee of immediate upside. Buy Or Sell Dogecoin Now? Santiment\u2019s analysis further emphasizes how macroeconomic forces have accelerated the crypto market\u2019s recent sell-off. On Tuesday, January 7, US bond yields surged following unexpectedly robust economic indicators, with the 10-year Treasury rising to 4.67%. Much of the market anxiety focused on the higher-than-expected ISM Prices Paid Index, a metric that can herald inflation, as well as a surprise uptick in the JOLTS job openings data. With signs of labor market tightness and possible inflation pressures, investors pivoted to risk-off strategies, hitting crypto assets across the board. Related Reading: Dogecoin Jumps 20%, But Social Media Still Bearish: Green Signal For Rally? \u201cCrypto markets sink further, indicating short to midterm buy zones for most assets,\u201d reads Santiment\u2019s published chart. In this vein, Dogecoin\u2019s current downturn lines up with the broader market narrative. If yields and inflation concerns continue to dominate headlines, we can anticipate more cautious capital flows into risk assets. Conversely, any signal of cooling inflation or a less restrictive Federal Reserve stance might catalyze a rally\u2014one that could be amplified by negative MVRV ratios across the board. Nevertheless, the contrasting signals make for a tricky trading environment. On one hand, Santiment\u2019s metrics point to advantageous historical conditions for those looking to accumulate, notably for DOGE at -8.89% MVRV. On the other, uncertain macro data\u2014ranging from Treasury yields to inflation prints\u2014could hamper any near-term recovery. For now, Santiment\u2019s outlook is measured: \u201cDo not assume these opportunity zone signals will lead to an immediate turnaround. But probabilities are pointing to at least a short to mid term turnaround for crypto shortly, assuming economic or geopolitical factors don\u2019t get in the way.\u201d At press time, DOGE traded at $0.33. Featured image created with DALL.E, chart from TradingView.com<\/p>\n","protected":false},"author":571,"featured_media":672906,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[83685],"tags":[1785,89174,85675,7,93005,92619,1803,1804,1805],"class_list":["post-672905","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-dogecoin","tag-doge","tag-doge-news","tag-doge-price","tag-dogecoin","tag-dogecoin-mvrv","tag-dogecoin-mvrv-ratio","tag-dogecoin-news","tag-dogecoin-price","tag-dogecoin-price-analysis"],"acf":[],"yoast_head":"\n
Dogecoin Hits A 'Blood In The Streets' Moment: Buy Or Sell Now?<\/title>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n