Dogecoin, the popular meme coin, has been experiencing some significant price action in the past few days. The price of Dogecoin has broken below key support levels at $0.4 and $0.3, and even briefly dipped below $0.27. However, after this quick decline, Dogecoin seems to be gaining momentum once again. A lesser-known indicator, the Gaussian Channel, is now pointing towards a potential 100% increase in Dogecoin’s price from its current levels.
The Gaussian Channel is a technical indicator that helps identify areas of price support and resistance by plotting two curves derived from normal distribution. This indicator can show where a cryptocurrency’s price is trading relative to its recent range and can signal extreme highs or lows. In the case of Dogecoin, the daily candlestick timeframe analysis shows that the coin is now interacting with the Gaussian Channel.
According to Trader Tardigrade, a crypto analyst, Dogecoin has been trading above the Gaussian Channel since mid-October. The mid-band of the Gaussian Channel acted as a support level during a minor correction when Dogecoin was trading around $0.1. The coin eventually bounced at the mid-band and reached a peak of $0.48 on December 3. However, Dogecoin has faced resistance since then, leading to a decline that has brought the price back to the mid-band of the Gaussian Channel.
The recent crash in Dogecoin’s price, which saw it drop below $0.27 to a low of $0.2663, marked a significant shift in market sentiment. Buyers have taken advantage of this low price point, which coincides with the Gaussian Channel, as a strong reentry point. Dogecoin is currently trading at $0.34, showing a 27% increase in the past few hours after bouncing back from $0.2663. This quick rebound indicates that market participants are preparing for another rally, with the Gaussian Channel serving as a key indicator for this price action.
If the momentum continues, a breakout above the upper boundary of the Gaussian Channel could signal the start of a strong rally. Trader Tardigrade predicts that this could lead to a 100% rally for Dogecoin, potentially reaching $0.69. One important level to watch will be $0.355, which is the upper boundary of the Gaussian Channel.
Overall, Dogecoin’s price movements in recent days have been significant, with the Gaussian Channel playing a key role in identifying potential support and resistance levels. Market participants are closely watching for any signs of a breakout or reversal in price, with the potential for a significant rally if the momentum continues to build.
