Dogecoin (DOGE) Stabilizes Within a Range, Flashes Buy Signal As Volatility Drops

Since its value plummeted to a seven-month low of $0.08 on August 5 during the broader market downturn, leading meme coin Dogecoin (DOGE) has consolidated within a range.

Dogecoin (DOGE) has been consolidating within a range since its value plummeted to a seven-month low of $0.08 on August 5.

This signals a decline in market volatility, lessening the possibility of price swings in the short term.

Dogecoin (DOGE) has been trading within a horizontal channel since August 8. This channel is formed when an asset’s price moves within a range for some time. This sideways movement happens when a relative balance between buying and selling pressures prevents its price from trending strongly in either direction.

The upper line of the channel acts as resistance, while the lower line serves as support. In DOGE’s case, resistance has formed at $0.10 and support at $0.09.

When an asset’s price stays within a narrow range like this, it signals low volatility, as there are no significant fluctuations.

Indicators confirm this for DOGE, with its Average True Range (ATR) on a downtrend since this sideways movement began. Currently at 0.0072, DOGE’s ATR has dropped by 27% since August 8, reflecting reduced market volatility.

Following a similar trend, the coin’s Chaikin Volatility has also declined. At press time, the indicator is below its center line at -43.24.

When this indicator also falls, it suggests that the market is experiencing smaller price swings. It is a sign of consolidation or a marker of reduced market activity.

The above is the detailed content of Dogecoin (DOGE) Stabilizes Within a Range, Flashes Buy Signal As Volatility Drops. For more information, please follow other related articles on the PHP Chinese website!