Key Takeaways
Are Dogecoin holders losing confidence after the memecoin crash?
No. Short-term holders are buying the dip!
Is Dogecoin currently undervalued?
Yes, data points to DOGE being in an accumulation zone, not an overheated market.
Dogecoin [DOGE] holders aren’t backing down just yet.
Despite last week’s memecoin meltdown, short-term holders (STHs) bought the dip. Confidence in DOGE stayed intact, and a larger move could form if buying pressure continues to build.
Memecoins take a beating
It’s been a rough week for the memecoin market.
Dogecoin, Shiba Inu [SHIB], and Pepe [PEPE] all slid more than 20%, wiping billions off their combined market value. Even newer names like Bonk [BONK] and Floki [FLOKI] couldn’t dodge the sell-off, as traders trimmed risk during broader weakness.
The drop is proof of how volatile the sector remains.
Source: CoinMarketCap
Still, with prices now hovering near local lows, dip-buying activity from STHs was proof that some investors may already be eyeing this pullback as a potential entry point.
Calmer phase for DOGE
Source: Alphractal
On top of that, the Cumulative Value Days Destroyed (CVDD) chart showed DOGE holding above its long-term value floor (yellow band), similar to periods that preceded past rallies.
Source: Alphractal
Meanwhile, the Reserve Risk Indicator stayed within the green accumulation zone, implying holder conviction remained high while market confidence had not overheated.
That alignment suggested the market entered a calmer accumulation phase rather than a speculative top.
In short, while Dogecoin’s price action stayed muted, on-chain data supported a recovery setup.
Is DOGE undervalued?
Dogecoin’s MVRV Z-Score (a metric that gauges when price deviates from its fair value) hovered near historic lows at press time, similar to levels seen before previous bull runs.
Source: Alphractal
Each time the MVRV spiked sharply (as seen in 2017 and 2021), it marked a major market top, while deep dips below zero often came before strong rebounds. The latest reading proved that DOGE remained in an undervalued zone, with little speculation left in the market.
If history repeats, this would help kickstart Dogecoin’s next major upswing.
