The largest memecoin Dogecoin (DOGE) has been on a downward trend for some time. Recently losing a significant amount of its value, DOGE has fallen below the $0.079 level. Popular analyst Ali Martinez recently warned that there could be a strong increase in volatility for Dogecoin’s DOGE.
High Volatility Alert for Dogecoin
Experienced cryptocurrency analyst Ali Martinez recently alerted to a potential increase in DOGE volatility through his personal Twitter account. The analyst highlighted Dogecoin’s Bollinger Bands (BB) on a 4-hour time frame. He noted that the BB on the 4-hour time frame has been facing the tightest squeeze since October 2023, which could be a sign of increased price volatility for DOGE.
BB shows the upper and lower levels positioned at standard deviation levels above and below a simple moving average of an asset’s price. These bands tend to dynamically adapt to increases in volatility as they set distances with standard deviation. The two main parameters used in BB are Period and Standard Deviation.
The extreme high volatility expected by the analyst signals the risk of pulling Dogecoin’s price below $0.078. On the other hand, the price of the altcoin could pull back to reach new highs. However, Dogecoin’s open interest (OI) currently indicates a positive trend despite the price drop. According to Coinglass data, DOGE’s OI has increased by 2.47% in the last 24 hours, reaching $432.21 million.
While derivative investors are funneling funds into Dogecoin, significant long liquidations have been observed in the last 24 hours. During this period, long positions worth approximately $653,000 were liquidated. However, no long liquidations have occurred in the 4-hour and 1-hour time frames. Experts consider that the large long liquidation may have played a role in DOGE’s price falling below $0.079.
DOGE’s price is currently ‘in the red,’ and challenging this trend does not seem feasible at the moment. The altcoin has seen a 0.10% decrease in the last 24 hours, trading at $0.07849, indicating a slow downward trend.
Dogecoin’s $3 Price Target
On the other hand, popular cryptocurrency analyst Crypto Patel claims that Dogecoin’s price is preparing to rise to $3 in the current bull run. Initially stating that DOGE provided a 268-fold return in its last bull run, the analyst mentioned that a 50-fold breakout is on the table under the influence of current chart patterns.
Despite his high expectations, the analyst underlined that the first limited target level is $1. He also added that such a rise is contingent on a strong breakout from the $0.11 level.
