Calm Before the Storm as Volatility Sinks

The Dogecoin price is in a tight range as the cryptocurrency volatility has dropped. The DOGE is trading at $0.3747, where it has been in the past few days. It is also 15% below the highest level last week while its market capitalization is at more than $48 billion. It is the sixth-largest cryptocurrency in the world, sitting between Cardano and Ripple. 

What happened: The DOGE price jumped last week after Coinbase announced that it will add the coin to its Coinbase Pro platform. This was major news for the coin since Coinbase Pro is one of the largest platform used by American institutional investors. 

As such, traders predicted more demand for the coin. The coin also jumped as activities in the meme stock sector remained volatile. For example, after surging by more than 100%, the AMC stock then retreated after the company announced a plan to sell shares. This week, Dogecoin will also be influenced by the performance of these meme stocks. Perhaps, the meme stock to watch will be GameStop, which will report its earnings later this week.

Dogecoin price prediction

Turning to the four-hour chart, we see that the Dogecoin price has barely moved in the past few sessions. The coin is trading at the same level as the 25-day moving average (MA). The Relative Volatility Index (RVI) and the Average True Range (ATR), which are important gauges of volatility have also fallen. 

Further, the coin seems to be forming a triangle pattern. All these are signs that the coin could be having a calm before the storm situation, meaning that it could soon show some heightened volatility. At this point, the key support and resistance levels to watch are $0.3320 and $0.4200, respectively.

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DOGE price chart

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