Major Meme Coin Dogecoin (DOGE) on Verge of 20% Crash, Popular Indicator Signals

Dogecoin's Price at Risk of Dip, Bollinger Bands Signal

Dogecoin (DOGE) has a reputation for volatile price fluctuations, often driven by social media and memes. However, technical indicators now suggest a potential price decline.

Bollinger Bands, a popular technical indicator based on a 20-day moving average and two outer bands, are signaling a risk of a sell-off.

The upper band indicates overbought conditions, while the lower band suggests oversold conditions. When the price of an asset reaches the upper band, it typically indicates a need for correction.

Currently, Dogecoin's price is hovering just below the middle line represented by the moving average, at around $0.266, indicating a lack of bullish momentum. More concerningly, the lower band is currently at $0.219.

If Dogecoin's price falls below the moving average and remains below the lower band, it could trigger a significant decline towards $0.219.

While Dogecoin has defied expectations in the past, the current technical indicators point to a greater likelihood of a price drop than a recovery.

Without a clear reversal, a 20% drop remains the most likely scenario. However, if the week closes above the median ($0.276), it could indicate bullish momentum and open the door for a 20% rally towards the upper band at $0.332.