The biggest meme coin, like many other leading cryptocurrencies, has been underperforming over the past several months, with its price down 73% on a yearly scale.

And while the bear market remains persistent and could linger a bit longer, some analysts have highlighted key reasons why DOGE could be gearing up for a rebound.

‘Invest When No One Else Cares’

Dogecoin has dropped to its current $0.07 (per CoinGecko), but the renowned analyst Ali Martinez outlined that the weekly TD Sequential indicator has flashed multiple consecutive buy signals. He described the trend as “a rare setup that could be warning a major bull rally is approaching.”

X user Cryptollica also chipped in. They pointed to the “dead attention” surrounding the meme coin lately, claiming that investors looking to make money should hop on the bandwagon when interest is at its weakest.

The analyst also touched on the Market Value to Realized Value (MVRV) ratio, which tumbled below 1. This development indicates that most holders are sitting at a paper loss and the asset is trading below its average cost basis. Usually, dropping to such territory appears near cycle bottoms, suggesting the bulls may soon take control.

JAVON MARKS joined the topic, too, saying DOGE could be on the verge of a major rally and could mirror its performance in past years. That said, the analyst envisioned a parabolic rise to $0.653, $0.7, and even $1.25 in the following years.

Trader Tardigrade made the most optimistic prediction, opining that DOGE has staged a massive double bottom formation that could trigger a price explosion to as high as $3.25.

The Bearish Case

It is hard to ignore other factors that suggest Dogecoin’s valuation could head south soon. The first one is the asset’s Relative Strength Index (RSI), which has risen above 70. Such high levels indicate that the meme coin has entered overbought territory and could be due for a correction. Conversely, readings below 30 are often seen as buying opportunities.

Next on the list is the lack of institutional support. Spot DOGE ETFs have not been attractive for pension funds, hedge funds, and other conservative investors, and that is no good news for the valuation. The opposite scenario would have forced the issuers of these products to buy real DOGE, thus potentially fueling a price appreciation. Since day 1, spot Dogecoin ETFs have generated a cumulative total net inflow of just $11.77 million, which is far below what spot XRP ETFs, for instance, have attracted.

Source: CryptoPotato