Dogecoin Plummets 11% as Bollinger Bands Flash Oversold Signal Amid $35M Liquidations

Dogecoin suffered an 11% price crash within 24 hours, wiping out $35.1 million in positions. Technical signals like Bollinger Bands suggest the cryptocurrency is oversold, but a rebound may not come immediately.

DOGE Price Takes a Tumble in a Volatile Market

Over the course of the past twenty-four hours, the price of Dogecoin (DOGE) has been a real roller coaster ride for all of the participants in the cryptocurrency market.

With a current loss of over 11% and over $35.1 million in liquidation due to price movement in the past 24 hours, the popular meme cryptocurrency DOGE is among the top performers in this "unfortunate" indicator. By the way, there was a marked increase in the liquidation of long positions.

Nevertheless, despite the fact that Dogecoin may presently appear ugly from a financial perspective, one prominent indicator actually indicates that the market's leading meme cryptocurrency is oversold. John Bollinger, a seasoned trader, created these bands decades ago, U.Today shares.

Bollinger Bands Signal Oversold DOGE Market Conditions

Bollinger Bands, for lack of a better term, show the positive and negative departures from a 20-day moving average. The price should, in theory, move around this region. The asset may be oversold or overbought if a move is made out of it.

In the case of DOGE, this is the first instance in which the meme cryptocurrency's price has broken out of the lower band; at the moment, one DOGE is worth $0.3576, or 3.5% more than Dogecoin quoted. This is true across all time periods, but especially the daily one.

DOGE Recovery Potential Remains Uncertain

Does this immediately indicate that the price of DOGE will rise? Very unlikely. But if the data on price movements is any indication, Dogecoin will most certainly reenter the Bollinger Band region. When exactly is still up for debate.