Dogecoin Bollinger Bands Tighter Than Before 2021 Rally, What It Means
Dogecoin's price, volume, activity, and investor interest have been pretty wild in recent days. Dogecoin outperformed Bitcoin in market inflows last week. This momentum has changed Dogecoin's technical picture, especially with the Bollinger Bands on the DOGE/BTC chart.
Crypto researcher Tony Severino noted that Bollinger Bands had tightened to a degree not seen in years, suggesting a fascinating prospect. Severino says the bands are tighter than before Dogecoin's 2021 surge.
Dogecoin Bollinger Bands Tighten Most
Widely used technical indicators Bollinger Bands limit price volatility. Narrow bands indicate little volatility. Widening bands imply significant volatility. Squeezing bands indicates a narrow asset range. The DOGE/BTC Bollinger Bands are closest than ever on the monthly timescale, according to Severino.
The last time the Bollinger bands were squeezed was before the 2021 rally, when meme coins soared enormously. If the result matches the Dogecoin-Bitcoin pair's past price movement, Dogecoin might be on the verge of a significant rise in the following months that could outperform the 2024 surge.
Dogecoin has rallied well in recent days. In particular, Dogecoin rose 72% to $0.176, its biggest level in six months. This increasing momentum helped Dogecoin break out of a three-year price chart channel pattern with a downward-sloping upper trendline from the 2021 high. This breakthrough is notable since Dogecoin broke over a critical barrier level that has held it back since 2021.
This breakthrough has greatly boosted the chances of a Dogecoin rise in the next months, albeit a retest is possible. If momentum persists, a crypto expert on social media site X predicts $2 as a top. However, multiple resistance levels separate the present price from this lofty aim. Resistance levels include $0.22 in 2024 and $0.7316 in all-time.
Dogecoin is now trading at $0.1585, down 10% from $0.176 to retest the channel breakthrough.
