Dogecoin’s Sell-Off May End Soon: Bollinger Bands Signal Potential Rebound

Trading volume for Dogecoin (DOGE) has dipped significantly, down 51.14% to $998.95 million. However, DOGE’s Bollinger Bands offer a glimmer of hope as they suggest a potential end to the bearish sentiment anytime soon. 💰

The short-term nine-day moving average remains below the 21-day average according to CoinMarketCap data, indicating Dogecoin is approaching oversold territory.

This setup often precedes significant price shifts and suggests a likely price reversal for DOGE in the near future.

Trading volume has also declined, signaling decreased market interest and reluctance from buyers. This decline may trigger a price recovery as demand drops and prices begin to appreciate.

Currently, DOGE is trading at $0.1870, representing a 5.38% increase over the past 24 hours. This suggests a gradual return of buying interest.

However, sustained low volume with no significant market movement may undermine this rebound and lead to further declines.

To trigger a rebound, DOGE needs to hold above $0.170 and stabilize to attract buyers. A sustained price rally could support a recovery towards $0.2 or higher.

The broader market’s positive trend in Bitcoin (up 1.43% over the last 24 hours) may also benefit Dogecoin, boosting its prices.

In contrast, Bitcoin volume shows promise despite being in the red zone. With a 28.92% decline to $44.45 billion, Bitcoin’s trading volume is still strong.

Meanwhile, open interest has risen by 1.78%, indicating sustained investor confidence in the meme coin even amidst market volatility.

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