The cryptocurrency market experienced a remarkable rise in the first three weeks of 2023. Now, the market has entered the correction phase. Major cryptocurrencies like Bitcoin and Ethereum have lost 2%-4% of their value in the last 24 hours. Meme coins like Dogecoin and Shiba Inu have similarly declined.
The effect of the decrease in the number of active addresses was also seen on the volume side. This metric has been at the $100 million threshold for the past few weeks and has generally held steady. The same thing reveals the indifference of traders and investors.
Is selling pressure increasing in the Dogecoin market?
Dogecoin’s MVRV rate has been on an upward trend recently. It rose to 1.04 from 0.79 December 31 low. Traditionally, an uptrend in this metric is not positive because it indicates that market capitalization has outstripped realized capital. In simpler terms, it means an increased motivation to sell in the market.
At press time, meme coin, MA’s [0.08451 dolar] is slightly above. If it manages to hold this level, it could surpass the 61.8% Fib level and rise to $0.095.
However, if current market conditions persist, i.e. if the market correction extends and selling pressure in the Dogecoin market continues to increase, a short correction to $0.776 can be expected in the short term.
You can follow the current price action here.