After a 159% surge from November 6 to November 12, Dogecoin (DOGE) has been consolidating in a higher range. On November 18, the largest memecoin completed a daily bullish engulfing candle, welcoming market speculation of an upcoming rally near its all-time high of $0.73.
As the market turns its attention to DOGE once again, one particular indicator has highlighted the coin’s historical potential for another parabolic rally in the coming weeks.
'The Gaussian channel' of Dogecoin suggests a breakout.
Trader Tardigrade, a market model analyst, mentioned in a post on X that Dogecoin is currently on track to replicate its historical price trajectory based on the Gaussian channel.
The Gaussian channel is an indicator that allows traders to determine the upper and lower price channels based on asset allocation principles.
According to the analysis, Doge has received support from the Gaussian channel's average for the third time in history. If history repeats itself, the trader concluded that 'DOGE will experience an incredible PUMP.'
Meanwhile, Javion Marks, an independent trader, believes that Dogecoin testing its previous all-time high (ATH) of $9.73 is 'almost imminent.'
Marks pointed out similarities between each parabolic price surge in 2016, 2021, and 2024, facilitating similar setups each time.
The price surge of Dogecoin could last up to $3 to $5.
While the parabolic increase exceeding $1 has been outlined based on the Gaussian channel, the upper target is calculated based on the law of diminishing returns, with preliminary estimates based on previous return on investment (ROI) rates.
As illustrated in the chart, the blue curve represents diminishing returns on a logarithmic scale, where Dogecoin is expected to reach a peak price of $3 to $5 by 2025.
Historically, Dogecoin has faced a bit of resistance just below its previous all-time high during the breakout process, so it is likely that the memecoin could achieve a stable position above $0.73 before undergoing a rapid price discovery process.
Meanwhile, Santiment, a data analytics platform, has emphasized that DOGE wallet activity has decreased in the past day. From an on-chain perspective, this is a bullish signal, as the platform has mentioned.
'When the total number of wallets in a network decreases, it is a sign of FUD and capitulation from novice traders, often a bullish indicator for the coin (as those liquidated coins are likely to be bought by larger whales and sharks holding for the long term).
