In a recent analysis by crypto expert Ali, it has been observed that Dogecoin (DOGE) is currently undergoing the tightest squeeze in its Bollinger Bands on the four-hour chart. This development is seen as a significant indicator pointing towards an imminent surge in the volatility of DOGE prices.
Bollinger Bands is a technical analysis tool consisting of a middle band, an N-period simple moving average (SMA), and two outer bands, the standard deviations of the security’s price above and below the SMA. The tightening of these bands suggests a period of decreased price variability and is often followed by a breakout, indicating increased volatility.
The last time Dogecoin experienced such a tight squeeze in its Bollinger Bands was back in October 2023. During that period, the cryptocurrency saw a notable surge in price volatility, catching the attention of traders and investors alike. Now, with the bands constricting once again, there is anticipation in the market for a potential repeat of such price movements.
Analyst Ali has emphasized closely monitoring the Bollinger Bands in this context, as they serve as a valuable tool for predicting potential price breakouts or breakdowns. However, the upcoming days will be crucial for Dogecoin enthusiasts and investors as they await the resolution of the tight squeeze in the Bollinger Bands and the potential impact on the cryptocurrency’s price.
New User Activity In The Dogecoin Universe
Adding fuel to the Dogecoin fire, recent data reveals a notable uptick in key metrics, signaling a fresh wave of interest and participation within the Dogecoin ecosystem. Over the past seven days, more than 890,000 new Dogecoin addresses have been created, marking a substantial increase in user adoption. The surge in addresses correlates with a remarkable 86% adoption rate among these new users, as they eagerly initiate their first transactions on the Dogecoin network, accoridng to the data from IntoTheBlock.
The influx of new users has not only led to a surge in address creation but has also impacted the seven-day active addresses metric on Santiment. DOGE’s active addresses, a crucial indicator of network engagement, have witnessed a significant uptick, reaching levels not seen in several months. In December, the highest recorded number of active addresses peaked at around 1.3 million, showcasing a notable surge in user activity.
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