In a recent video released by crypto analyst Kriss Pax on YouTube, the current state of Dogecoin in the midst of a crypto market downturn was discussed. The video highlighted the impact of Bitcoin’s decline on Dogecoin’s price and explored the potential for a rebound. Dogecoin, currently at around 11.4 cents, has been struggling to maintain the 12-cent mark, reflecting the overall market slump.
Bitcoin’s influence on the broader crypto market was emphasized by Pax, pointing out that the impending repayment of 140,000 Bitcoins from the Mt. Gox exchange hack in July has instilled fear among investors. The fear of a massive sell-off when the repayments are made, along with issues of Bitcoin mining profitability and energy costs, has contributed to the market downturn. Despite these challenges, Dogecoin holders have shown resilience, with many continuing to hold their positions even as leveraged liquidations take place.
On a positive note, Pax remains optimistic about Dogecoin’s potential for recovery, suggesting that the current downturn may represent a buying opportunity. Referring to the Relative Strength Index (RSI) and historical data on altcoin dominance post-Bitcoin downturns, he predicts a potential rebound for Dogecoin. Analyzing the broader market dynamics, Pax believes that altcoins, including Ethereum and Dogecoin, may lead the next market rally.
Highlighting on-chain indicators, Pax points out a buy signal for Dogecoin, indicating that the digital currency is currently undervalued. The Market Value to Realized Value (MVRV) ratio supports the idea of Dogecoin presenting a strong buying opportunity at its current price levels. Drawing on historical data and previous market cycles, Pax remains bullish on Dogecoin’s long-term prospects despite the current market challenges, suggesting that significant gains may be possible if market dynamics align as expected.
