For the last month, the famous memecoin is unusually calm, indicating that Dogecoin is on calm before the storm kind of scenario. DOGE remained unwavering even as one of the greatest meme coin manias swept the market. However, technical indicators also suggest that a huge price movement is underway.
However, the lukewarm time may be coming to an end, according to a technical analysis of the currency based on Bollinger Bandwidth. What has investors more thrilled than DOGE’s strong price movement is how it will affect meme coins, which have more opportunity for a boom.
Can it spark a new phase of the meme coin revolution, attracting funds from established investors? Will it be a temporary thrill or pave the road for a disastrous downfall? Here is a review.
Bollinger Bands Suggests that DOGE is Going for a Breakthrough
Bollinger Bandwidth suggests that Dogecoin’s remarkable tranquility may break shortly with a significant move. In the next few days, volatility might go either way.
The indicator, a variant of the well-known Bollinger Bands, is a dependable tool for forecasting volatility and price changes in crypto and financial assets. Falling Bollinger Bandwidth indicates decreasing volatility, whereas rising Bandwidth indicates increased volatility.
If the bandwidth is abnormally broad, it indicates that the current bullish or bearish trend is coming to an end. Atypically low bandwidth also suggests that the market is ready for major price action in both directions.
With the bandwidth at 0.06 for Dogecoin, the bands are compressing. Surprisingly, it hasn’t been that low since February of this year. It can be taken as a DOGE burst in the pipeline, with bandwidth being pushed to grow in the next few days, causing dramatic pricing behavior. However, the Bollinger Bandwidth offers us very nothing about the volatility’s direction. It might be positive or negative.
DOGE is now trading for $0.07234, 90.19% lower than its all-time high. The market cap hasn’t fluctuated much in a month, remaining stable at $10 billion.
DOGE’s Determination: A Signal of Strength or Saturation?
While the anticipated volatility is thrilling, traders are unsure whether it will be a boom or a fall. It is necessary to examine the price movement of the meme currency over the previous several weeks.
If the steady period acts as a solid barrier against the bear market waves, the currency will be ready for a bull run in the following days. The rising momentum could push it 25%-40% higher on the charts. Long-term investors and traders alike can profit from the price activity by entering strategically. It may also be a good idea to save the token before the rally.
However, this is not always the case. Even though the larger market remained mired in negative waves, the meme coin market has been thriving admirably since the second part of April. The 5000%+ surge started by Pepe quickly expanded across the meme coin market. Hundreds of new meme coins quickly generated triple-digit profits for investors.
Why was the excitement limited to new assets? One probable explanation is that established meme currencies have peaked. They are well past their prime and may face a wave of sales in the coming months.
Newer Meme Coins Will Profit from DOGE Volatility
One thing is certain, regardless of the path Dogecoin chooses. Investors are excited about the arrival of new meme currencies, predicting massive returns. Newcomers like Pepe, Wall Street Memes, and AiDoge have received a warm welcome.
While Pepe has a market worth of $495 million following a run to $1.6 billion, Wall Street Memes is still in the ICO stage. Based on industry observers, it will cause a four-digit expansion, giving generational riches to early investors. With the token launch and early exchange listings anticipated for the next few weeks, AiDoge, albeit being less volatile, will reward investors sooner.
The immense response to the presales of Wall Street Memes and AiDoge Tokens backs up the projections. Within a few days of going live, the Wall Street Memes presale has reached the $1 million mark, and the excitement is fast rising. On the fifth day, it will have reached the $2 million mark. AiDoge, on the other hand, is currently sold out, becoming one of the year’s quickest presales. It generated $14.9 million in total.
Closing Thoughts
As a result of the bandwidth’s inclination to oscillate between growth and contraction, dogecoinis on calm before storm movement. It should be noted that the imminent volatility outburst is agnostic of the market path, implying that the major move might be either bearish or bullish.
At present, the price of dogecoin was at $0.073. The world’s largest meme cryptocurrency, presently worth $10.22 billion, has increased by only 3% this year. Meanwhile, the market toppers Bitcoin and Ether have increased by 68% and 60%, accordingly.
