Major Meme Coin Dogecoin (DOGE) on Verge of 20% Crash, Popular Indicator Signals
2025-02-16
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Dogecoin DOGEUSD has become known for its unpredictable price swings, often influenced by memes and social media. Now, however, there are signs that a potential dip may be on the horizon. This time, it's not just speculation — the popular technical indicator Bollinger Bands is pointing to a real risk.
One tool that many traders use to analyze market trends is Bollinger Bands, which are based on a 20-day moving average and two outer bands. These bands track price volatility and when the price of an asset reaches the upper band it often indicates overbought conditions, the lower band — oversold.
At the same time, if the price falls below the middle line represented by the moving average, it can indicate weakening momentum.TradingView">
Currently, Dogecoin's price is just below the line — around $0.266 — while the median is $0.276. This suggests that Dogecoin is not in a strong bullish position. More worrisome, however, is the lower band, which is currently at $0.219. If Dogecoin bulls struggle to get the price back above the critical line, there's a real risk that the price will drift toward this lower band.
While DOGE has surprised the market many times before, the current data points to a greater chance of a decline rather than a recovery. There seems to be a greater chance of a drop toward $0.219 than a rally back to the upper band at $0.332.
So what's next? Without a clear reversal, a potential 20% drop remains the main scenario. If the week closes above the median, it could signal strong bullish momentum and open an opportunity for DOGE to rise 20% in the coming days.