The price drop of Dogecoin can be over very quickly, according to a little-known but important indicator called the Gaussian Channel (GC). As recently noted by a crypto analyst pseudonymously known as Trader Tardigrade, the Gaussian Channel recently flashed green on the DOGE weekly chart, indicating that the crypto could move higher ahead of the next wave.
DOGE’s Gaussian channel is flashing bullish green
The Gaussian channel, on the other hand, is a relatively lesser-known technical indicator among crypto experts other well-known 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 the recent range. Interestingly, the price of DOGE is known to react positively when it reaches the green zone of this lesser known but powerful instrument.
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According to a weekly DOGE chart shared by analyst Trader Tardigrade on social media platform This is a very bullish development that could indicate a big move higher is imminent. “When time is up, #Dogecoin will rise incredibly,” the analyst said.
A deeper examination of 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 embark on a multi-year journey, reaching multiple record highs in 2018. A similar pattern occurred in 2021 and 2022, as DOGE rose astronomically to peak at its current all-time high.
How high can it push the price of Dogecoin?
Of course, no one can predict exact price targets. However, if history repeats itself, DOGE is expected to show bullish action in the coming years. According to the analyst, a potential surge could see DOGE break past its current all-time high and enter new price territory. His most optimistic outlook sees Dogecoin break past $0.73 this year introduce $1 in 2025. Trader Tardigrade noted a final price target well above $6.5, which represents an increase of more than 5,100% compared to the current price level.
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Given the current DOGE price action, this is an ultra-bullish price target may seem unrealistic to some of the best meme coin lovers. 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 still many price resistance levels to overcome before investors can have confidence in a DOGE rally.
According to data from IntoTheBlock, these were DOGE whales reduce their property in the past year. This sell-off has dropped their collective ownership from 45.3% a year ago to about 31% today.
Featured image created with Dall.E, chart from Tradingview.com
