The period of unusually calm trading conditions in the dogcoin market may be coming to an end.This is a widely regarded technical indicator, Brin Bandwidth, which has just dropped to its lowest level of 0
The period of unusually calm trading conditions in the dogcoin market may be coming to an end.
This is a widely regarded technical indicator, Brin Bandwidth, which has just dropped to its lowest level of 0.06 since February 2019.
Bollinger band is a widely used technical indicator that indicates that asset prices will be two standard deviations above or below their 20-day moving average price.
Brin bandwidth is the difference between these two levels.
Naturally, under calm market conditions, these levels will come closer and bandwidth will shrink.
When there is a significant fluctuation in prices, these levels will further separate and the bandwidth of the Bollinger will become wider.
From a historical perspective, when Brin bandwidth drops to such a low level, prices will experience significant fluctuations - although low Brin bandwidth does not provide any signal about when significant price fluctuations will arrive, on the contrary, it only indicates that prices may have a point of view at some point.
The contraction of the Bollinger Belt to a multi-year low coincides with the compression of dog coin prices within an important long-term technical structure, and breaking through this structure may become a catalyst for the next major market trend.
Price Forecast - Where is the Next Step for Dogcoin?
DOGE eventually changed hands and approached $0.0725 per token, spinning on either side of its 21DMA.
Given that DOGE continues to trade in the southern region, which has been experiencing a downward trend since early April, short-term dogcoin price forecasts remain bearish.
Dogcoin is also worryingly close to testing an important upward trend that has been working, dating back to June last year.
Breaking this upward trend may become a catalyst for the soaring volatility of dog coins required to increase the bandwidth of Brin.
It will definitely reopen the door and fall to an annual low of $0.0620 or even lower.
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