Will DOGE Surprise with Extreme Moves Amid Current Dip?
Dogecoin (DOGE), the prominent meme coin, has faced increased competition for its throne. Lately, the DOGE cryptocurrency has experienced a significant decline in value, dipping below the $0.079 threshold.
Popular crypto analyst Ali Martinez recently drew attention to the narrowest Bollinger Band squeeze experienced by Dogecoin.
— Ali (@ali_charts) February 4, 2024
Martinez highlighted the Bollinger Bands on DOGE’s 4-hour price chart, noting that they are currently experiencing the tightest squeeze since October 2023. This suggests that there is a potential for increased volatility in DOGE’s price.
This heightened volatility could lead to a drop in DOGE’s price below $0.079, or it could result in a surge followed by a correction. However, there is a positive sign in the Dogecoin open interest data. It shows a 2.47% increase, reaching $432.21 million, as reported by Coinglass.
Analysts rely on narrowing Bollinger Bands to predict a period of low volatility followed by increased market activity. When the bands tighten, it shows that prices are consolidating within a narrow range. This has historically been a signal of upcoming significant price movements, making it an important indicator for investors.
Growing Interest in Dogecoin Despite Price Dip
At press time, Dogecoin is trading at around $0.0785 and maintaining a market cap of approximately $11.22 billion with a 24-hour trading volume of over $200 million. Despite the recent dip, there is continued interest in Dogecoin as new investors enter the market and existing holders remain committed to the coin’s potential for growth.
The meme coin has attracted a large following due to its association with notable figures like Elon Musk and its fun, lighthearted nature.
To navigate the potential extreme volatility in Dogecoin’s price, investors are advised to keep a close eye on market trends, consider using stop-loss orders, and maintain a diversified portfolio.
Angel Marinov is the Managing Editor at Coinlabz. With extensive knowledge of crypto payments and blockchain use cases, Angel is a trusted source of accurate and timely information