Dogecoin Analysis from $10 Trillion Asset Manager! “Get Ready!”

Tesla CEO Elon Musk’s favorite cryptocurrency Dogecoin’There are also strong up and down movements.

Here’s what Elon Musk did DOGE There are also shares.

However, Dogecoin is one of the two biggest cryptocurrencies this year. To Bitcoin (BTC) and Ethereum (ETH) It was quieter than.

According to the news of Coindesk, examining the price performance of Dogecoin Fidelity analysts, Applied the Bollinger bands indicator to the DOGE chart.

According to analysts, the Bollinger bands indicator shows that there may be a calm before the storm in DOGE.

Bollinger bands are defined as volatility lines placed two standard deviations above and below the 20-day SMA of cryptocurrency prices.

An increase in the width between the bands indicates increased volatility, while a narrowing of the distance between the bands indicates a decrease in volatility.

Accordingly, analysts “usually wide or high bandwidth indicates that an ongoing uptrend or downtrend is coming to an end.” said.

Based on these data, analysts stated that Bollinger bandwidth has narrowed in Dogecoin, accordingly:

“We at Fidelity interpret an unusually low bandwidth at DOGE as the DOGE market may be about to start a significant move in both directions.

So, Dogecoin may see an explosion of volatility soon, in line with its trend of oscillating between bandwidth contraction and expansion.”

Because according to analysts, the bandwidth has narrowed in DOGE, and this means that the bands will expand and there may be sharp movements in the down or up direction.

As can be seen from the Dogecoin chart from Tradingview, the width between the bands has been very tight lately and the bandwidth has dropped to 0.06.

1.32% increase in the last 24 hours dogecoin At the time of writing, it is located at $ 0.7336.

Founded in 1946, Fidelty is one of the world’s largest asset managers, holding $10.3 trillion in assets under management as of December 2022.

*Not investment advice.