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It was Dogecoin An eventful few days In terms of price movement, trading volume, Trading activityand interest among investors. Dogecoin led the entire market in terms of inflows, It even outperformed Bitcoin last week. This momentum has led to a compelling shift in the technical outlook for Dogecoin, especially with the Bollinger Bands on the DOGE/BTC chart.
This was an interesting look Most notable Cryptocurrency analyst Tony Severino, who noted that Bollinger bands have tightened to a degree not seen in years. In fact, Severino points out that the ranges are now tighter than they were before Dogecoin’s 2021 bull run.
Dogecoin Bollinger Bands squeezed to a narrower level
Bollinger bands are widely used in technical indicators that determine the limits of price fluctuations. When the bands narrow, they generally indicate low volatility. On the other hand, widening bands indicate high volatility. Squeeze, where the bands move closer together, indicates that the asset is trading within a narrow range. In the case of Dogecoin, Severino notes that the DOGE/BTC Bollinger Bands are now closer than ever on the monthly time frame.
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The last time Bollinger bands were under such pressure was just before the 2021 rally, which saw the meme coin surge during the meme coin craze. According to the history of the Dogecoin-Bitcoin pair, if the result is like the previous price action, Dogecoin could be on the cusp of a strong rally in the coming months which could even… Leads to more revenue From March 2024.
DOGE breakout from a three-year channel
As mentioned earlier, Dogecoin’s rise over the past few days has been impressive. In particular, Dogecoin rose 72% to peak at $0.176, its highest point in more than six months. This bullish momentum allowed Dogecoin to break out of a three-year channel pattern on the price chart defined by the upper downward-sloping trend line dating back to the 2021 high. This breakout is significant, as it represents Dogecoin moving beyond a key resistance level that… It has contained its growth since the 2021 peak.
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The potential for Dogecoin to rise in the coming months has increased dramatically due to this hack, although there is still the possibility of a retest. according to According to a cryptocurrency analyst on social media platform X, $2 is a potential peak target if the momentum continues. However, it is important to note that several resistance levels lie between the current price and this ambitious target. Two examples of notable resistance levels are the 2024 high at $0.22 and the all-time high at $0.7316.
At the time of writing, Dogecoin price is trading at $0.1585, which means that Reflected by about 10% From $0.176 to retest the channel breakout.
Featured image created with Dall.E, chart from Tradingview.com