Bitrabo Editorial
Dogecoin (DOGE) is currently experiencing a phase of remarkable stability that may be coming to an end soon, according to the Bollinger Bandwidth technical analysis indicator. This impending shift may pave the way for a significant price swing, which could draw in new capital, take the cryptocurrency to new heights, and impact traders and investors.
The potential for a steep downturn could trigger a cascade of sell-offs, causing the price to drop and leading to significant losses for those who are caught on the wrong side of the trade. Thus, the price of Dogecoin is poised to experience a burst of volatility, and this event could occur in either direction.
Understanding Dogecoin’s Impending Volatility
The Bollinger Bandwidth measures an asset’s volatility and price movements within a specified time frame, and it is a derivative of the Bollinger Bands indicator created by analyst John Bollinger. It calculates the percentage difference between the lower and upper Bollinger bands, which are dynamic price channels based on a moving average and standard deviation. The Bollinger bandwidth indicates how tightly or widely the price is squeezing within these bands.
For Dogecoin, the current Bollinger bandwidth reading suggests that its extended period of calmness and range-bound trading may soon come to an end. This indicator acts as a warning signal, hinting at an impending breakout that could result in a sharp and pronounced move in either direction.
Meme Coin Braces for Impact
The tightened Bollinger Bands on Dogecoin’s daily chart recently caused its Bollinger bandwidth to plummet to 0.06, the lowest level since February 2019. As a result, Dogecoin may be on the cusp of experiencing a significant surge in volatility, consistent with the historical pattern of the bandwidth alternating between expansion and contraction. The price movement could result in either a bullish or bearish outcome, and the market can manifest as either.
As of writing, Dogecoin’s price on CoinGecko is valued at $0.072994 with a marginal decline of 0.3% over the past 24 hours. Its performance in the past seven days reflects a decrease of 0.3%. The Bollinger bandwidth sets the stage for an imminent shift in Dogecoin’s price trajectory, and market participants are eagerly anticipating the next move. Whether it will be a surge or a crash remains uncertain, but one thing is clear: Dogecoin’s tranquility is about to be disrupted, and the cryptocurrency world is bracing itself for an eventful turn of events.
-Featured image from Mead Metals