Is volatility about to catch up?
The Dogecoin price has been eerily calm. “SNL” has passed, Elon has gone silent and the crypto markets are lackluster. I feel it won’t last long.
DOGE was last traded at $ 0.3059, down $ 0.0128 (-4.11%).
Considering the hype surrounding Dogecoin earlier this year, the past month has been remarkably uneventful.
Considering DOGE has fallen 60% from its high of $ 0.7600 in May, it’s hard to think of a better performer in the past 6 months. In 2021 alone, the coin itself gained over 6,000%.
In the first 5 months of the year, Doge was everywhere. The celebrity billionaire backers of Elon Musk and Mark Cuban have added fuel to the already skyrocketing price of Dogecoin. Price and hype peaked on May 7, the day before Musk’s much-anticipated Saturday Night Live appearance.
The “Dogefather” mentioned the dog-themed cryptocurrency. Only, he called DOGE “agitationâ€. Probably not the glowing benchmark that Dogecoin devotees were hoping for.
The Tesla CEO’s fascination with crypto didn’t end there, although he turned his attention to Bitcoin. After previously adding $ 1.5 billion in BTC to Tesla’s balance sheet, it quickly turned around, attacking Bitcoin’s green credentials.
This triggered the start of a bearish market for Bitcoin but also crushed the Dogecoin price.
DOGE technical perspectives
On May 19, Dogecoin traded at $ 0.1950 before climbing back to $ 0.4540 over the next 2 weeks. Currently, price has retraced just over 50% of that rebound and is stuck between two trend lines.
On the 4 hour price chart we can see that since Doge traded a tightening band. Triangular formations are formed when a market is trading within a narrowing range. Generally, as the range narrows, volatility often decreases.
Periods of low volatility can often result in a reverse period.
The volatility of Dogecoins has tended to decline over the past month. However, given that the price is 6000% higher than at the start of the year, this is unlikely to continue. The only problem is that until the price of Dogecoin breaks free from the triangle, we won’t know which direction the volatility will take it.
Below $ 0.2800, this could be the trigger for a sell-off that a volatility breakout could exacerbate.
Alternatively, if DOGE comes out of the pennant formation above $ 0.3400, it may be the trigger for a violent bullish move.
Considering the current weakness in crypto, the downside seems most likely. However, I wouldn’t discount either ultimately.
I would, however, be confident to say that what comes next could be a momentous event.
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Dogecoin price chart in 4 hours
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