The Dogecoin price slump might be over very soon, according to a little-known but important indicator called the Gaussian Channel (GC). As recently noted by a crypto analyst known pseudonymously as Trader Tardigrade, the Gaussian Channel recently flashed green on the DOGE weekly chart, suggesting the crypto could surge to the upside for the next wave.
DOGE’s Gaussian Channel Flashes Bullish Green
The Gaussian Channel is a comparatively less well-known technical indicator among crypto experts, in contrast to other famous technical indicators such as moving averages, RSI, and MACD. The Gaussian Channel plots two curves derived from normal distribution to identify areas where the price is trading at extreme highs or lows relative to its recent range. Interestingly, the price of DOGE has been known to react positively whenever it reaches the green zone of this lesser-known but powerful tool.
Related Reading
According to a DOGE weekly chart shared on social media platform X by analyst Trader Tardigrade, recent price action has seen the cryptocurrency hitting the green zone of the Gaussian Channel. This is a very bullish development that could signal a major move higher is imminent. “When the time is up, #Dogecoin will surge incredibly,” the analyst said.
A more in-depth examination of the chart reveals two earlier instances in which Trader Tardigrade identified similar patterns for Dogecoin and the Gaussian Channel. The first time the Gaussian Channel turned green was in 2016, allowing DOGE to go on a multi-year journey, which saw it setting multiple all-time highs in 2018. A similar pattern occurred in 2021 and 2022, which saw DOGE surging astronomically to peak at its current all-time high.
How High Can It Drive Dogecoin Price?
Of course, no one can predict exact price targets. However, if history is to repeat itself, DOGE is expected to exhibit bullish action for the next few years. According to the analyst, a potential surge could see DOGE break past its current all-time high into new price territory. His most optimistic outlook has Dogecoin breaking past its $0.73 this year and entering $1 by 2025. Trader Tardigrade noted a final price target well above $6.5, representing an increase of over 5,100% from the current price level.
Related Reading
Considering the current DOGE price action, this ultra-bullish price target might seem unrealistic to some of the best meme coin enthusiasts. At the time of writing, DOGE is trading at $0.1235 and is down by 9.44% in the past seven days amidst a broader market decline. There are many price resistance levels to overcome before investors can be confident of a DOGE rally.
According to data from IntoTheBlock, DOGE whales have been reducing their holdings in the past year. This selloff has seen their collective holdings drop from 45.3% from a year ago to about 31% today.
Featured image created with Dall.E, chart from Tradingview.com
Credit: Source link
