Does Dogecoin's [DOGE] recent dip really present a buying opportunity?

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.

After finding a bearish volatile break, Dogecoin defended the $0.07 support.

DOGE’s MVRV ratio corroborated with the increased bearishness.

Dogecoin’s [DOGE] reversal from the $0.14 resistance invalidated its recent bullish pattern amidst the broader uncertainties in the crypto market. As a result, the meme coin plunged toward its daily moving averages after witnessing a slight surge in the selling pressure.

Read Dogecoin's [DOGE] Price Prediction 2023-24

Meanwhile, the $0.07 support level inflicted a rebound above the 200 EMA (green). At press time, DOGE was trading at $0.0887, up by 6.51% in the last 24 hours.

Sellers retraced gains of the previous bull run

Source: TradingView, DOGE/USD

The recent bull run aided the buyers in clawing back above the $0.11-mark after registering triple-digit gains. But the $0.14 ceiling convincingly plateaued the streak of green candlesticks.

The resulting consolidation hinted at a bullish pennant structure in the daily timeframe. But the market-wide uncertainties caused a breakdown well below the $0.11-mark.

A sustained sway above the 200 EMA can support DOGE buyers' efforts to prevent further losses. The latest bullish engulfing candlestick can further reaffirm the chances of buyers protecting the $0.08 support in the coming times.

However, over the last few days, DOGE marked a declining trend in its volume. The daily gains could not stimulate enough buying pressure to reinforce a bullish stance yet.

The Relative Strength Index (RSI) stood near the equilibrium while depicting a slight edge for the sellers. The buyers should wait for an immediate or potential reversal above the 50-mark before entering a long position.

DOGE's MVRV turned negative

Source: Santiment

DOGE's 30-day MVRV turned negative over the last few days to depict an increased advantage for the bears. However, in the past 24 hours, the ratio marked a spike.

The price action was yet to follow. In any case, the buyers should watch for a potential close toward the positive side to truly gauge the chances of a solid upturn on the charts.

Finally, the dog-themed coin shared a 54% 30-day correlation with the king coin. Thus, keeping an eye on Bitcoin’s movement would complement these technical factors.

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