6 months ago
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Dogecoin now finds its current price movement moving with a peculiar lack of action. In this case, the lack of action points to low volatility, especially in the last few days. Notably, on-chain data from IntoTheBlock has revealed that the crypto is now at its lowest point in the last 30 days.
In the crypto world, low volatility typically means lower interest from short-term speculators and traders, which in turn could lead to DOGE trading in a sideways movement in the short term.
Volatility Points To Stagnant Price Action
At the time of writing, DOGE is trading at $0.1430 and is down by 5.22% in the past 24 hours. This decline has seen the meme coin reversing some of its gains earlier in the week. Interestingly, this reversal and failure to keep up its price gains means DOGE has largely bounced between the upper end of $0.172 and the lower end of $0.12 since the middle of April.
According to the data from IntoTheBlock, this sideways movement can be attributed to a lack of volatility from the meme coin.
DOGE’s price action is primarily influenced by a limited number of factors, given its meme coin status and lack of a clearly defined real-world utility. One of these factors involves the movements of whales, while another is the increased demand fueled by trader hype. This surge in demand, in turn, leads to heightened volatility and a quick increase in prices.
On the other hand, when a crypto like Dogecoin experiences a period of low volatility, it usually means the price isn’t moving up or down very much.
In other words, the market has temporarily reached an equilibrium. During these lulls, the Dogecoin price tends to move sideways, trading within a narrow range. The low volatility indicates a lack of strong sentiment in either direction. Neither the bulls nor the bears have taken control, so the market is indecisive.
What’s Next For DOGE?
At the time of writing, DOGE could continue trading around the $0.14 price level in the coming days. The crypto is also at risk of revising $0.12 at the downside if the $0.14 support level fails to hold. However, DOGE is still one of the largest cryptocurrencies by market cap, meaning this period of low volatility could end as soon as it began.
A factor that could return bullish momentum is the recent reports of Tesla adding Dogecoin as a payment method according to a FAQs section on the company’s official website.
The lackluster action presents a good opportunity for Dogecoin traders to load up their holdings while anticipating a price increase in the longer term.
Featured image from Pinterest, chart from TradingView
