Dogecoin (DOGE) has formed a setup that shows it might be heading into a sharp volatility spike soon.
Top market analyst Ali Martinez, in his characteristic nature, shared a Dogecoin chart that shows the pioneering memecoin might be heading into a strong volatility season. While generally known as a volatile coin, Dogecoin’s price has made no uniquely mega rally thus far this year, and its growth in the past year has not pushed it beyond the 52-week price ceiling of $0.1058.
At the time of writing, Dogecoin price comes in at $0.0787, down by 0.82% in the past 24 hours. The coin’s market capitalization is pegged at $11,255,556,573, while trading volume has jumped by 31.85% to $208,065,589.
The Dogecoin Price Outlook
According to the analysis from Ali Martinez, the Bollinger Bands on the Dogecoin 4-hour chart are experiencing the tightest squeeze since October 2023. This trend, he noted, is signaling an impending spike in DOGE price volatility.
Per the chart, the price of Dogecoin is hovering somewhere between the lower Bollinger Bands and the signal line, with the upper band tilting relatively closer to form what appears to be a convergence point. The attempt to break out completely toward either the upper or lower bands might come with some erratic surges, as Martinez suggested.
— Ali (@ali_charts) February 4, 2024
Dogecoin is susceptible to comments from influencers like Elon Musk and Mark Cuban and with sparing conversations around the coin from these personalities thus far, DOGE has not made such hyper moves in recent times. However, the influence of these billionaires and other key ecosystem trends might turn out to validate the projections in the price of DOGE as highlighted by Martinez in the long term.
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Dogecoin Network Milestones
Over the past months, Dogecoin has done more than wait for its price to print major growth runs as it has recorded interesting network milestones.
As reported earlier by The Crypto Basic, Dogecoin’s new address count soared to an All-Time High (ATH) of 247,240 as of January 29, surpassing the 160,000 new addresses record set in 2014.
In all, Dogecoin has gained more prominence over the years with its resilience and Elon Musk’s Grok AI has recognized it as the best cryptocurrency for X.