Is Dogecoin Price Poised For Extreme Volatility Amid Dip Below $0.079?

Dogecoin (DOGE), the King of meme coins, has witnessed its throne heat up lately. In recent times, the DOGE crypto has lost massive value and even extended below the $0.079 mark. Moreover, the nosedive could escalate as a popular analyst has recently hinted at extreme volatility in the Dogecoin price.

Dogecoin Price To Experience Extreme Volatility?

Ali Martinez, a renowned crypto analyst on social media, recently took to X and warned against a spike in Dogecoin price volatility. The analyst shed light on DOGE’s Bollinger Bands on its 4-hour price chart. He noted that the Bollinger Bands on the 4h chart have experienced the tightest squeeze since October 2023, indicating an increase in DOGE price volatility.

For context, Bollinger Bands represent upper and lower envelopes positioned at standard deviation levels above and below a simple moving average of the price. These bands dynamically adjust to fluctuations in volatility, as their distance is determined by standard deviation. The two key parameters utilized in Bollinger Bands are Period and Standard Deviations.

The extreme volatility in Dogecoin price could push it lower than $0.078 as well. On the other hand, it could propel the Dogecoin price to new highs only to slump back. However, the Dogecoin open interest data suggests a positive development. The DOGE open interest registered a 2.47% increase to $432.21 million, according to Coinglass data.

While the derivatives traders are pouring in funds, major long liquidations were noticed in the last 24 hours. About $653,000 worth of DOGE long liquidations were registered in 24 hours. Whilst, the 4-hour and 1-hour data indicate no long liquidations. The initial long liquidations could have played a catalyst in Dogecoin price extending lower than $0.079.

Also Read: Crypto Market Prediction: ETH, DOGE, SUI Price Analysis for February 4

Dogecoin Price Today

The DOGE price is in the ‘red’ and defying this trend seems possible as of now. At press time, the Dogecoin price was down by 0.10% to $0.07849, indicating slow declines. The crypto boasted a market cap of $11.22 billion. In contrast, DOGE’s trade volume soared 28.65% to $200.98 million.

According to Crypto Patel, another crypto analyst, Dogecoin is poised for a $3 target in the current bull run. Firstly, he stated that DOGE provided a 268x return in the last bull run. Thereafter, he mentioned that the current chart patterns suggest a 50x breakout in the current bull run.

However, the analyst limited his first target for DOGE in this bull run to $1. Whilst, he urged to keep an eye on the breakout point of $0.11, he denoted via a red circle on the chart attached to his tweet. Whilst, TradingView analytics suggest a bearish turn as DOGE is trading substantially lower than 50-day and 100-day EMAs of 0.0821 and 0.0808.

Also Read: Cuban Confirms Dallas Mavericks Still Accepts Dogecoin: Is DOGE Set for a Rise in 2024?