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External forces have indeed triggered volatility in Dogecoin. To better understand this volatility, let's dive into some key indicators. _Historical Volatility_: Dogecoin's historical volatility is around 11.36, which is relatively high compared to other assets ¹. This suggests that Dogecoin's price can fluctuate rapidly. _Beta_: Dogecoin's beta is approximately 2.47, indicating that it's more volatile than the overall market ¹. When the market moves, Dogecoin's price tends to move more dramatically. _Standard Deviation_: The standard deviation of Dogecoin's daily returns is around 11.27, which further emphasizes its volatility ¹. To mitigate these risks, investors can consider diversification strategies, such as pair trading. For example, pairing Dogecoin with other assets like Micron Technology, Morgan Stanley, or GM can help reduce risk ¹. It's also worth noting that there are indices, like the Compass Crypto Volatility Index Dogecoin - 20%, that aim to provide a dynamic exposure to Dogecoin while controlling volatility ². These indices can be a useful tool for investors looking to manage their risk exposure. Overall, understanding Dogecoin's volatility is crucial for making informed investment decisions. By analyzing its historical volatility, beta, and standard deviation, investors can better navigate the risks and opportunities associated with this asset.$DOGE

A lot can be gathered from the chart below. The first obvious takeaway is that for much of Dogecoin's existence, the crypto was essentially worthless. For years, the price of Dogecoin was below a penny. Then, in 2021, something happened that fueled the price of Dogecoin to nearly $0.70. Unlike mainstream cryptocurrencies such as Bitcoin or Ethereum, Dogecoin is classified as a meme coin. Essentially, Dogecoin doesn't have much utility in the real world as a widely accepted means of payment. Instead, its underlying "value" is more or less determined by internet-driven hype -- namely, viral memes. In 2021, Dogecoin was propelled into the spotlight after Elon Musk started frequently posting about the crypto on social media and even referenced it during his dedicated episode on Saturday Night Live. In other words, Dogecoin experienced an outsized level of interest thanks to Musk's influence and facetious "endorsement" of the cryptocurrency.$DOGE

In the world of cryptocurrency, most investors are talking about the same thing: Whether or not Bitcoin will pass and sustain a price over $100,000 soon. As of this writing, Bitcoin's price is hovering around $98,000 -- putting its newest milestone mere inches away. In the background, another crypto has experienced a surge of its own. Enter Dogecoin (DOGE 1.35%), whose price has skyrocketed by 376% in 2024. At a price of roughly $0.43, can Dogecoin's momentum continue and propel the token to a price of $1 by the end of the year? Let's take a look at what is fueling Dogecoin's price rise, and assess whether now is a good time to get in on the action.$DOGE

To figure out where Dogecoin could go next, it might be best to take lessons from the past. The speculative frenzy that drove it to a price per token of $0.73 in 2021 fizzled out just as quickly as it started, and investors who were late to the party suffered substantial financial losses. Unfortunately, I don't see how the latest rally will end differently. There is no apparent plan to involve Dogecoin in the new Musk-led DOGE agency, nor has there been any change to the token's fundamental outlook. It's possible a lighter regulatory environment will open the door to new use cases, but that is a complete unknown at this stage. As a result, I don't think the recent 31% dip is an opportunity to buy Dogecoin. Could it go higher from here? Sure. But predicting what speculators might do next is impossible, and Dogecoin might also be headed for another plunge of more than 90%. Investors should even consider the possibility that the recent peak of $0.47 could be the top for this current cycle.$DOGE

Dogecoin’s Relative Strength Index (RSI) has soared above 70 into the overbought zone, often indicating a retracement. However, in 2021, a similar metric led to continuous bull pressure. While the RSI led to an upward swing three years ago, many remain skeptical about present market conditions. Furthermore, recent price consolidations after previous highs point to the last bull phase. Growth after the US election has stalled for most meme coins, and prices have begun a consolidation phase. A series of outflows mark this as volatility continues. However, the meme coin consolidation is usually followed by a breakout, leading to a frenzy as holders look to pick up huge gains. At press time, Dogecoin trades at $0.40, a 0.2% drop in the last 24 hours, taking weekly exits to 7.2%. Meanwhile, the total meme coin market cap is down 3%, with the market cap at $132.4 billion.$DOGE