Will Dogecoin lose its woof as market volatility rises?

• DOGE’s worth elevated by double digits within the final week.
• Technical indicators hinted at the opportunity of a worth swing in both route.

Main meme coin Dogecoin [DOGE] could expertise headwinds this week as volatility markers hinted at the opportunity of vital short-term worth swings.

At press time, DOGE was buying and selling at $0.207. In accordance with CoinMarketCap’s information, its worth has elevated by 20% within the final week.

Nonetheless, with rising volatility in its market, the meme coin could shed a few of these beneficial properties. 

Value swings on the horizon

AMBCrypto assessed the coin’s Bollinger Bands (BB) on a one-day chart and located that the hole between the indicator’s higher and decrease bands has steadily widened for the reason that twenty seventh of March.

This indicator gauges an asset’s market volatility and potential worth actions. When the hole between its decrease and higher bands widens, it signifies a rise in volatility. 

The hole could widen for a number of causes, one among which is elevated buying and selling quantity. In accordance with Santiment’s information, DOGE’s buying and selling quantity climbed to a weekly excessive of $7 billion on the twenty eighth of March.

In periods of band growth, merchants are looking out for worth breakouts in both route. 

Additional confirming the opportunity of a market swing, the worth of DOGE’s Common True has risen by 5% up to now three days. 

This indicator measures market volatility by calculating the typical vary between excessive and low costs over a specified variety of intervals.

When it rises on this method, it means that the worth swings have gotten extra vital.

Supply: DOGE/USDT on TradingView

The bulls stay in management

Whereas volatility markers trace at the opportunity of worth swings within the coming days, DOGE’s Directional Motion Index (DMI) and Shifting Common Convergence/Divergence indicators confirmed that bullish sentiments exceeded bearish exercise.

Readings from the coin’s Directional Motion Index (DMI) confirmed the constructive directional index above the detrimental index. 

When these strains are positioned this manner, it implies that the energy of the prevailing bullish pattern is increased than the energy of any potential downward worth motion.

Supply: DOGE/USDT on TradingView

Learn Dogecoin’s [DOGE] Price Prediction 2024-25

Likewise, DOGE’s MACD line crossed above the sign line on the twenty sixth of March and has since been positioned this manner.

An upward intersection of the MACD line with the sign line is a bullish signal, typically indicating an increase in shopping for strain.