Dogecoin (DOGE) May Face 80% Price Crash, Popular Indicator Signals

Dogecoin Price Crash: Bollinger Bands Signal 80% Drawdown

[Image of Dogecoin (DOGE) via U.Today]

Dogecoin (DOGE), one of the most popular meme cryptocurrencies, is facing a potential crash that could be severe. Bollinger Bands, a technical indicator, suggest a possible 80% drawdown for DOGE.

Bollinger Bands, developed by John Bollinger, encompass three curves: a median and two deviations above and below it. These lines define a range within which traders identify price trends and extremes. The median is represented by a 20-day moving average.

Currently, the price of DOGE has fallen below the median on the weekly timeframe. This indicates a lack of purchasing power and may propel DOGE towards the lower band, which currently lies around the $0.057 zone.

While the possibility of DOGE reaching $0.06 is not imminent, the indicators suggest a higher probability of a decline rather than a rise. Bollinger Bands signal weakness for DOGE, making a medium-term decline the likely scenario. The most extreme outcome could be a crash to $0.057, an 80% drawdown from the current price.

It is important to note that, as with all cryptocurrency markets, the situation remains fluid and can change rapidly. However, the Bollinger Bands currently indicate downside risk for Dogecoin.