- Dogecoin’s current price movement is marked by a peculiar lack of action, pointing to low volatility.
- On-chain data from IntoTheBlock reveals that the crypto is now at its lowest point in the last 30 days.
- Low volatility in the crypto world typically means lower interest from short-term speculators and traders, which could lead to DOGE trading in a sideways movement in the short term.
Explore the current state of Dogecoin’s price movement, its low volatility, and what this could mean for the crypto’s future trading patterns.
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.
Low Volatility and Market Equilibrium
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.
Conclusion
Despite its current low volatility, Dogecoin’s future remains uncertain. Traders and speculators should keep a close eye on the market, as changes could occur rapidly. For now, the opportunity exists for traders to increase their holdings while the price remains relatively stable.
