Dogecoin Alert Issued Amid Growing Price Volatility: Details

Mishaboar, a vocal Dogecoin community member, issues a warning to the Dogecoin community amid potential price volatility ahead.

In a tweet, Mishaboar warns traders against using high leverage, citing a current effort by crypto influencers to promote high leverage trading, while urging crypto users to ignore this kind of narrative, especially inexperienced traders.

In context, crypto leverage trading allows traders to borrow funds, enabling them to control positions much larger than their initial investment. By increasing exposure to market price movements, the risk of losses significantly increases and vice versa.

Mishaboar chipped in that holding spot crypto might imply dealing with volatile assets, warning users not to compound this risk by trading derivatives with leverage. "You will almost certainly lose it all, "Mishaboar warned, adding, "It's not a matter of if, but when."

Dogecoin price action

Dogecoin rose this week, increasing on Wednesday and Thursday as traders turned to crypto and other assets to hedge against macroeconomic tensions in the face of a government shutdown.

Dogecoin closed above $0.24 on Wednesday, indicating a slight advantage to bulls.

Although Dogecoin remains locked inside a broad range between $0.14 and $0.29, its price action seems to be forming an ascending triangle pattern. In this scenario, buyers will have to achieve a close above $0.29 to validate this bullish setup. Dogecoin may then rise to $0.39.

The bullish pattern might be invalidated if bears drag the price lower. That suggests Dogecoin may extend its range trading for some more time. The daily RSI has fallen toward the mid-50 level, with the likelihood of consolidation more likely in the coming sessions.

At the time of writing, DOGE was down 1.51% in the last 24 hours to $0.252 as the market saw profit-taking on Saturday.