Dogecoin (DOGE) Bollinger Bands Signal Sell-Off May End Soon

The king of meme coins, Dogecoin (DOGE), is facing sell-off pressure as trading volume is down by 51.14% at $998.95 million. However, DOGE’s Bollinger Bands suggest a potential end to the bearish sentiments anytime soon.

Dogecoin near oversold territory

As per CoinMarketCap data, Dogecoin’s Bollinger Bands short-term nine-day moving average remains trading below the 21-day average. With DOGE trading right at the lower end of the bands, it suggests that the meme coin is nearing the oversold region, and the price might likely change as the sell-off eases out.

Notably, the Bollinger Bands indicate overselling is in and a potential imminent price reversal for DOGE. The current setup often precedes a significant price shift of an asset, and Dogecoin looks to experience the same soon.

Meanwhile, the plunge in trading volume shows declining interest from market participants as buyers are reluctant to continue buying the meme coin. This development could trigger a price recovery as demand drops and prices begin to appreciate.

As of this writing, DOGE was changing hands at $0.1870, representing a 5.38% increase in the last 24 hours. This uptick indicates that buying interest is gradually returning.

However, if volume stays down and does not return to the green zone, the price rebound could lose momentum and slip back.

What could trigger DOGE rebound?

Dogecoin needs to hold above $0.170 and stabilize to attract buying interest from traders. This could support a rebound to higher levels of $0.2. Without increased volume or a broader market catalyst, the recovery risks further decline.

Bitcoin is also on an upward trajectory in the broader market, gaining 1.43% in the last 24 hours. This uptick could rub off on Dogecoin and other altcoins.

Unlike DOGE, Bitcoin volume outlook is better off despite being in the red zone. Bitcoin has a 28.92% decline in volume at $44.45 billion.

Other bullish ecosystem indicators are the recent spike in open interest, which increased by a significant 1.78% despite volatility threats. This suggests investor confidence has not waned in the meme coin.

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