Dogecoin has been stuck in a price correction since March 31, down 21% from $0. [] $2,214. DOGE showed decreased on many indicators, including the MVRV ratio. The MVRV ratio has recently turned negative, indicating that many holders are currently in the red. That may sound bad, but it could actually be a huge buying opportunity for long-term investors in meme cryptocurrencies.

The data show a negative MVRV ratio for DOGE. According to price data provided by on-chain analysis company Santiment, DOGE's MVRV ratio quickly fell sharply to a low of 15. 36% on April 4.

The MVRV ratio compares the market value of assets to their realized capital to gain insight into investor sentiment and the potential for price increases. For DOGE, it divides the current market value of Dogecoin by the realized value of all the tokens on the market. At the time of writing, Dogecoin had a market value of $24.9 billion. Although Dogecoin is still the * * of all memes, its market value has fallen by nearly 20% in the past seven days.

When the ratio becomes negative, it usually means that investor sentiment deteriorand selling pressure is widespread. However, this also indicates that the DOGE transaction price is discounted relative to the historical investment costs. For long-term investors, this may provide an opportunity to buy DOGE at prices below its average realized price. On the other hand, a very high positive DOGE MVRV ratio usually leads to a sharp correction in prices.

In the past, the negative MVRV was followed by a period of sharp price increases. Thus, past actions suggest that DOGE started recovering prices shortly after falling in the range from-5% to-15%. DOGE last MVRV, the ratio fell to-15% during a 31% drop between March 14 and March 20. During this period, the value of the meme currency reached $0. [] $1,251. However, the Meme coin soon reversed, with the price soaring 78% in seven days to $0. [] 2262 on March 28.

At the time of writing, DOGE was trading at $0. [] 1,738. Recent price moves suggest that meme tokens navigate in narrow areas and suffer from a massive sell-off by whales. DOGE is currently trading just above the support area above $0. [] $17. A break below this price level could mean that DOGE falls to another low of $0. [] $125 in the short term.

On the other hand, the end of the current market consolidation could revive interest and purchases in DOGE. So the price is easy to re-test the $0. [] 22 level.