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In a recent 12-hour chart shared on X, unbiased technician Cantonese Cat (@cantonmeow) underscores what he calls a “Bollinger Band squeeze” on Dogecoin, hinting that volatility could possibly be about to erupt.
Dogecoin Bollinger Bands Trace At ‘Large Transfer’
The chart, captured at 03:54 UTC on Might 21, fixes the memecoin at $0.22967 whereas the 20-period easy transferring common (the Bollinger foundation) tracks marginally decrease at $0.22717. The higher and decrease bands are parked at $0.24260 and $0.21175 respectively, compressing the buying and selling envelope to barely three US cents and leaving only a 13.6% hole between the extremes—its tightest unfold since early April’s doldrums.
The chart lays out a transparent chronology of volatility growth and subsequent contraction. From Might 6 onward Dogecoin erupted out of a month-long base, sprinting from the mid-$0.16 zone to print a neighborhood peak roughly at $0.26. That impulse detonated the bands to their widest studying in six weeks. Since then, the DOGE value has traced a shallow pull-back however—importantly—has not surrendered the 20-SMA. Every dip into the mid-$0.21 space has been absorbed, carving out progressively larger lows and turning the mid-band into dynamic assist.
Associated Studying
With the bands now coiling, merchants are eyeing the inflection factors telegraphed by the indicator. A decisive 12-hour settlement past the higher rail at $0.243 would launch value into open air, exposing the latest swing excessive at $0.27 and, past that.
Conversely, a candle physique punched by the decrease rail at $0.212 would nullify the short-term bullish structure and certain drag Dogecoin towards the psychological $0.20 deal with and Might’s worth space close to $0.16. Till both threshold offers means, the squeeze itself stays the story. “Bollinger band squeezing, preparing for the subsequent large transfer,” the analyst writes fittingly.
Associated Studying
DOGE Channel Breakout Is Brewing
Shifting as much as the one-day view, Dogecoin’s motion because the November-2024 peak is contained by a broad descending channel whose ceiling now descends by the $0.24 hall. Worth is camped straight beneath that higher rail at $0.231, an space that additionally coincides nearly to the cent with the 61.8% Fibonacci retracement of the total November-high–to–mid-March-low leg ($0.234).
The confluence creates a technically potent lid: a each day shut above it could not solely mark the primary breach of the seven-month channel however would concurrently reclaim the “golden ratio,” an occasion that traditionally invitations trend acceleration.
If bulls can drive settlement north of the overhead trendline and the 0.618 Fib, the subsequent magnet resides on the 0.5 retracement ($0.2824). Past that, the 0.382 stage at $0.3300 and the 0.236 at $0.3890 bracket the upper targets contained in the channel’s former inside.
Failure right here would go away a well-defined assist ladder: the 200-day EMA at $0.217, the 100-day at $0.207, and the cluster across the 0.786 Fib at $0.1669. Solely a decisive break of these cabinets would re-energise bears enough to revisit the March capitulation trough at $0.13.
Featured picture created with DALL.E, chart from TradingView.com
