Dogecoin Bollinger Bands Squeezes Tighter Than It Was Before 2021 Rally, What This Means
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Este artículo también está disponible en español. Dogecoin has had quite an eventful few days in terms of price action, trading volume, trading activity, and interest among investors. Dogecoin led the entire market in inflows, outperforming even Bitcoin in the past week. This momentum has introduced a compelling shift in Dogecoin’s technical outlook, particularly with the Bollinger Bands on the DOGE/BTC chart. This interesting outlook was highlighted by crypto analyst Tony Severino, who pointed out that the Bollinger Bands have tightened to a degree not seen in years. In fact, Severino notes that the bands are now tighter than they were before Dogecoin’s rally in 2021. Dogecoin Bollinger Bands Squeeze To Tightest Level Bollinger Bands are widely used technical indicators that mark price volatility boundaries. When the bands narrow, it generally signals low volatility. On the other hand, widening bands indicate high volatility. A squeeze, where the bands move closer together, suggests that the asset is trading within a tight range. In the case of Dogecoin, Severino’s observation notes that the DOGE/BTC Bollinger Bands are now closer than they’ve ever been on the monthly timeframe. Related Reading The last the Bollinger bands were at such a squeeze was just before the 2021 rally, which saw the meme coin surge exponentially during the meme coin craze. Going by the history of the Dogecoin-Bitcoin pair, if the outcome plays out like its previous price action, Dogecoin could be on the cusp of a strong rally in the coming months that could even lead to more returns than the 2024 rally. Source: X DOGE Breakout From Three-Year Channel As noted earlier, Dogecoin’s rally over the past few days has been impressive. Particularly, Dogecoin went on a 72% rally to peak at $0.176, its highest point in over six months. This upward momentum allowed…
Filed under: News - @ November 1, 2024 11:20 pm