The NVT ratio of Dogecoin has been hovering near the historical high recently. In the past few months, there have been a series of peaks in this area
The NVT ratio of Dogecoin has been hovering near the historical high recently. In the past few months, there have been a series of peaks in this area. Interestingly, prices also responded in a similar way. In this article, we will analyze the above trends and point out our expectations for DOGE this time.
Dogecoin NVT price trend
Before continuing, it is important to note that the NVT ratio compares network value with transaction value. The continuous increase in numbers usually means that the on-chain value being transferred cannot exceed the network value.
In the past year, Dogecoin has had four NVT peaks. The fifth one was created earlier this month. This is the reaction of the price of DOGE in each case:
- On May 23, 2022, when NVT skyrocketed, DOGE first depreciated by 44% and then rebounded by 58%
- On August 1, 2022, when NVT surged, DOGE initially fell by 8% and then rebounded by 37%
- On December 5, 2022, NVT surged, with DOGE falling 41% first and then rising 51%
- On May 1, 2023, when NVT surged, DOGE initially fell 33% and then rose 35%
From this, it can be seen that this trend is very obvious. Each NVT peak will trigger the value of DOGE to first decline and then rebound more fiercely. The latest peak appeared on July 3rd, and since then, there has been a downward trend on the daily chart. Except for one exception, all declines hover between 33% -44%. On the other hand, the upward trend range is between 37% and 58%. Therefore, if history repeats itself this time, it is expected that the price of DOGE will continue to decline in the next few days, and ultimately achieve a double-digit increase.
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