The fall in the price of Dogecoin it could end very soon, according to a little-known but important indicator called the Gaussian Channel (GC). As noted recently by a well-known crypto analyst under the pseudonym Trader Tardigrade, the Gaussian Channel recently glowed green on the DOGE weekly chart, suggesting that the crypto could rise into the next wave.
DOGE Gaussian Channel Flashes Bullish Green
The Gaussian Channel is a comparatively lesser-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 the 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 is known to react positively whenever it reaches the green zone of this lesser-known but powerful tool.
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According to a DOGE weekly chart shared on social media platform X by analyst Trader Tardigrade, recent price action has seen the cryptocurrency reach the green zone of the Gaussian Channel. This is a very bullish development that could signal that a major move higher is imminent. “When time runs out, #Dogecoin will increase incredibly,” the analyst said.
A deeper look at the chart reveals two previous instances where 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 that saw it establish several all-time highs in 2018. A similar pattern occurred in 2021 and 2022, which saw DOGE rise astronomically to peak at its current all-time high.
How high can he drive the price of Dogecoin?
Of course, no one can predict exact target prices. However, if history repeats itself, DOGE is expected to see bullish action in the coming years. According to the analyst, a potential surge could see DOGE surpass its current all-time high and enter new price territory. His most optimistic outlook is that Dogecoin has surpassed $0.73 this year and getting in with $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.
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Considering the current DOGE price action, this ultra-optimistic price target may seem unreal for some of the best meme coin enthusiasts. At the time of writing, DOGE is trading at $0.1235 and is down 9.44% over the past seven days amid a broader market decline. There are many price resistance levels to overcome before investors can be assured of a DOGE recovery.
According to data from IntoTheBlock, DOGE whales were reducing their holdings last year. This liquidation has seen their collective holdings fall from 45.3% a year ago to around 31% today.
Featured image created with Dall.E, chart from Tradingview.com