Dogecoin ($DOGE ) At the moment, it is extremely oversold, as indicated by the Bollinger Bands

The price of Dogecoin (DOGE) over the last 24 hours has been a real rollercoaster for all participants in the crypto market. Having fallen more than 11% at the moment, the movement of the DOGE price triggered liquidations of over $35.1 million in 24 hours, making the popular meme cryptocurrency one of the leaders in this "unpleasant" indicator. By the way, long positions were liquidated significantly more.

Nevertheless, despite all the unattractiveness that Dogecoin may currently represent from an investment perspective, one popular indicator is actually signaling that the main meme cryptocurrency of the market is oversold. This is the Bollinger Bands, developed by expert trader John Bollinger decades ago.

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Without going into details, the Bollinger Bands represent a 20-day moving average and deviations from it in both directions. Logically, the price should fluctuate within this range. When movement occurs outside, it may signal that the asset is oversold or overbought.