After a week of price fluctuations, Dogecoin (DOGE) is at a critical point where the meme coin could soar by as much as 20%. The king of meme coins has declined by over 5.50% in the last 30 days, but DOGE’s Bollinger Bands suggest an uptick is possible.
Bollinger Bands compression could trigger DOGE’s breakout
CoinMarketCap data shows Dogecoin’s volatility has hindered the meme coin from reclaiming the $0.10 price level. Each attempt to breach the $0.10 resistance level was faced with rejection as investors continued to anticipate a bullish trigger.
Now, Dogecoin is showing signs of its price testing the upper Bollinger Bands despite low engagement by market participants. Notably, investors and traders alike have pulled back because of unending volatility in the market.
As per data, trading volume has declined by 25.03% to $530.15 million over the last 24 hours. This indicates that market participants are doubtful of a sustained rebound in price. Within this time frame, DOGE also dropped in price by 0.54% to $0.09081.
The price outlook signals a modest pullback amid the ongoing volatility across the broader cryptocurrency ecosystem.
Generally, to witness a strong breakout, rising volume supports a bullish rally. Hence, it is likely that for the price of DOGE to hit the upper Bollinger Bands, holders need to actively transact the meme coin and show support.
If volume records a significant uptick, the Bollinger Bands signal that the price could jump to $0.108972.
It is worth mentioning that sometimes, a price breakout is possible after a period of compression on the Bollinger Bands, even with low volume. This happens because of reduced selling pressure, not due to sustained buying from market participants.
Dogecoin could experience that with the current setup if sellers step back and allow buyers to control the price direction upward.
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Historical April performance fuels bullish Dogecoin sentiment
This scenario looks achievable because, as U.Today reported, Dogecoin is stabilizing following its drawn-out decline.
The meme coin has exited its movements between low highs and deep lows. Now, the price is moving sideways, allowing long position traders to dominate short position investors.
Overall, market participants are anticipating a bullish April as expectations grow for the king of meme coins to repeat its historical trend. These hope for a repeat of the 2021 cycle when Dogecoin soared by a staggering 531% to reach a high of $0.453.
With the Bollinger Bands signaling 20% potential, this might just be the trigger DOGE needs to break out.
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