The price of Dogecoin (DOGE) has been a real roller coaster ride for all crypto market participants over the past 24 hours. Having lost more than 11% in the moment, DOGE’s price action caused more than $35.1 million in liquidation in 24 hours, making the popular meme cryptocurrency one of the leaders in this “unfortunate” indicator. Long positions, by the way, were liquidated significantly more.
However, despite all the ugliness that Dogecoin may now present from an investment standpoint, one popular indicator is actually signaling that the main meme crypto coin of the market is oversold. This is the Bollinger Bands, developed by expert trader John Bollinger decades ago.
Without going into deep detail, 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 there is a move out of it, it can signal that the asset is oversold or overbought.
With DOGE, it is exactly the first situation, when on all time frames, and more importantly on the daily one, the price of the meme cryptocurrency has gone beyond the lower band, which is now at $0.3576 per DOGE, which is 3.5% higher than the current Dogecoin quotes.
Does this mean an increase in the price of DOGE right here and now? Not likely. However, Dogecoin’s return to the Bollinger Band range is likely to happen if the price action statistics are to be believed. The question of when remains open.
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