Dogecoin (DOGE) Price Hits Upper Bollinger Band, Reversal Could Be Incoming

Dogecoin (DOGE) price has recorded a bullish performance in the past seven days, growing by 6.24%. This supported the memecoin in reclaiming $0.180

Dogecoin (CRYPTO: DOGE) price has shown some bullish performance in the past seven days, with the coin increasing in value by 6.24%. This enabled the memecoin to reclaim the $0.180 mark.

However, a recent price setup shows a major shift might be incoming.

According to data by Cryptorank, Dogecoin’s price has hit the upper Bollinger Band, and a reversal could be seen in the short term. As per market data, DOGE has not found support at the $0.180 level and is currently on a downward path.

However, the market remains bullish, as participants consider the pullback consolidating DOGE’s price.

The positive outlook on the part of investors might flow from recent activities in the ecosystem. Notably, DOGE whales have remained active despite the price volatility.

Whale transactions recently witnessed a staggering spike of over 500% as these large holders appear to have gone on an accumulation spree.

Investors are betting on a continued upward trajectory in the price of dog-themed memecoins.

However, the technical indicators show that Dogecoin price is in the upper range of the Bollinger Band. This indicates that the price may experience a reversal unless the uptrend is consolidated.

Such a development could signal a significant loss for investors who have continued accumulating the coin despite its fluctuating price and the flashing bearish signal.

Interestingly, the cryptocurrency market is dynamic, and seasoned traders do not act based on just one factor.

While the Bollinger Bands suggest a price decrease, historical data points to a potential rally ahead.

As per Cryptorank data, DEOG is maintaining a 6.93% growth rate for April.

Although this is less than the average rate of 63.1%, based on records, Dogecoin might be gearing up for a breakout.

May have an average growth of 23%, and if history repeats itself, DOGE might hit new peaks.

Historical data shows that the coin has shone even when the broader cryptocurrency market experiences uncertainty and price dips.

For instance, in 2015, 2017, and 2019, DOGE recorded an average growth of 48.5%, 256.1%, and 35.5%, respectively. Last year, Dogecoin price grew on average by 19.1%.

This data supports the bullish sentiment in the Dogecoin ecosystem and could help prevent a massive selloff.

Investors are likely holding on to their assets in anticipation of a possible rally next month to rake in gains.

This might account for the recent surge observed in whale transactions. These large investors see a price consolidation as the memecoin prepares for a breakout in May.

As of this writing, DOGE price has risen by 0.69% to $0.1792 in the last 24 hours. The coin had previously reached a high of $0.1805 before experiencing a pullback.

Similarly, trading volume has declined by 14.75% to $1.04 billion.

However, technical indicators suggest short-term volatility as the RSI indicates that the asset is neither overbought nor oversold.

Its upward journey will have to break resistance at $0.182 and $0.1972 if it is to witness a major rally.

If Dogecoin price follows its historical trend in May, its price could soar to test the $0.20 level. With community engagement, the memecoin could move toward $0.30 under a bullish setting.