The recent Dogecoin price slump might be coming to an end soon, thanks to an important indicator called the Gaussian Channel (GC). This indicator has been highlighted by a crypto analyst known as Trader Tardigrade, who pointed out that the Gaussian Channel on the DOGE weekly chart recently turned green, indicating a potential surge in the crypto’s price.
Unlike more well-known technical indicators like moving averages, RSI, and MACD, the Gaussian Channel is not as widely recognized among crypto experts. This indicator uses two curves derived from normal distribution to identify when the price is trading at extreme highs or lows compared to its recent range. Interestingly, Dogecoin has historically reacted positively when it enters the green zone of this indicator.
Analyzing a DOGE weekly chart shared on social media by Trader Tardigrade, it is evident that the cryptocurrency has entered the green zone of the Gaussian Channel. This bullish development could signal a significant upward movement in the near future. In the past, similar patterns identified by Trader Tardigrade have led to substantial price increases for Dogecoin, such as in 2016 and more recently in 2021 and 2022.
While it’s impossible to predict exact price targets, Trader Tardigrade believes that Dogecoin could experience bullish momentum over the next few years. He suggests that DOGE might surpass its current all-time high and potentially reach $1 by 2025. The most optimistic scenario even sees Dogecoin breaking past $6.5, representing a remarkable increase of over 5,100% from the current price level.
Despite these optimistic projections, some investors may find such price targets unrealistic, especially considering the current market conditions. As of now, Dogecoin is trading at $0.1235, down by 9.44% in the past week amid a broader market decline. There are several price resistance levels that DOGE needs to overcome before a sustained rally can be confirmed.
Data from IntoTheBlock indicates that DOGE whales have been reducing their holdings over the past year, with their collective ownership decreasing from 45.3% to about 31% currently. This selling pressure could potentially impact Dogecoin’s price movement in the short to medium term.
In conclusion, while the Gaussian Channel indicator is signaling a potential bullish trend for Dogecoin, investors should exercise caution and conduct their own research before making any investment decisions. The crypto market is highly volatile, and price movements can change rapidly. It’s essential to stay informed and be prepared for all possibilities when trading cryptocurrencies.