Dogecoin Breakout? Bollinger Bands Tease What to Expect

The Dogecoin (DOGE) price is experiencing intense consolidation after the latest broader market breakdown. The meme coin has dropped by more than 3.5% in the past 24 hours and is trading for $0.1533. While sellers dominate the Dogecoin market, there are signs of a potential rebound based on technical indicators like the Bollinger Bands.

Dogecoin and Bollinger Bands tease

The price of Dogecoin has retained a positive uptick in the trailing seven-day period, jumping 4.35% during this time. With the recent growth trend, the Bollinger Bands set up on the daily chart have teased reduced volatility. 

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This chart shows that the broader market outlook fuels the current shift. On the Bollinger Bands, the price of DOGE is below the 20-Simple Moving Average (SMA), likely appearing mildly oversold. The Relative Strength Index of 42 indicates that a trend shift is likely if the sell-off peaks.

Most market participants are gearing up for the DOGE price rebound already. As reported by U.Today, Dogecoin whales scooped up more than 800 million DOGE over the past 48 hours. This proves that the big buyers consider the current price level a huge discount for the top meme coin.

If this accumulation trend is sustained, it may fuel a rebound in the price of DOGE. 

Dogecoin ETF trend-shaping sentiment

Beyond the whale accumulation trend, Dogecoin investors are also hyped by the coin’s likely entry into the exchange-traded fund market. According to Bloomberg analysts, top asset managers, including Grayscale, have filed for the product, which has high approval odds.

Based on pro-crypto changes within the U.S. Securities and Exchange Commission (SEC), including the assumption of a new chairman, the market is further convinced that a DOGE ETF, alongside other altcoin funds, may gain approval soon.

For now, DOGE’s rebound potential is tied to the general market, and traders will determine its direction over the next few days.