- DOGE price rose by double digits last week.
- Technical indicators suggested that the price could move in either direction.
Major meme coin Dogecoin [DOGE] The stock could face some headwinds this week as volatility indicators suggest the potential for significant price changes in the short term.
At the time of writing, DOGE was trading at $0.207.according to CoinMarketCap According to the data, prices have increased by 20% in the last week.
However, due to increased market volatility, meme coins may lose some of these gains.
Price changes are imminent
AMBCrypto evaluated this coin’s Bollinger Bands (BB) on the daily chart and found that the gap between the indicator’s upper and lower bands has steadily widened since March 27th.
This indicator measures the market volatility and potential price fluctuations of an asset. A widening gap between the lower and upper bands indicates increased volatility.
This gap could widen for several reasons, one of which is increased trading volume.according to Santimento’s DOGE’s trading volume reached a weekly high of $7 billion on March 28, according to the data.
During periods of band expansion, traders will focus on price breakouts in either direction.
Further evidence of potential market volatility, DOGE’s Average True value has increased by 5% over the past three days.
This indicator measures market volatility by calculating the average range of high and low prices over a specified period of time.
A rise like this suggests that price movements are becoming more volatile.
Source: DOGE/USDT on TradingView
Bulls remain in control
While volatility indicators suggest possible price movements in the coming days, DOGE’s directional movement index (DMI) and moving average convergence/divergence indicators indicate that bullish sentiment is outweighing bearish moves. I showed that.
The coin’s directional index (DMI) reading showed a positive directional index that outweighed the negative index.
When these lines are placed this way, it means that the strength of the general bullish trend is higher than the strength of the potential downside price movement.
Source: DOGE/USDT on TradingView
Read the Dogecoin article [DOGE] Price prediction for 2024-2025
Similarly, DOGE’s MACD line broke above the signal line on March 26th and has been in this position ever since.
An upward crossing of the MACD line and the signal line is a bullish sign and often indicates increasing buying pressure.
