Recent price movements over the past two days have seen the price of Dogecoin break below support levels at both $0.4 and $0.3 consecutively, before ultimately reversing after a quick drop below $0.27 in the last 24 hours. Since then, this meme coin appears to be accelerating, with a lesser-known but important indicator suggesting a rise of at least 100% from this point. According to the technical analysis of cryptocurrency analyst Trader Tardigrade, the recent decline has caused Dogecoin to enter the Gaussian Channel.

The Importance of the Gaussian Channel for Dogecoin Price

The Gaussian Channel is a lesser-known technical indicator. However, it is a powerful indicator that identifies price support and resistance areas by drawing two curves derived from the normal distribution to determine areas where the price of a cryptocurrency is trading at extreme highs or lows compared to its recent range.

In the case of Dogecoin, technical price analysis on the daily candle timeframe shows that this meme coin is currently interacting with the Gaussian Channel.

According to the chart shared on social media platform X by cryptocurrency analyst Trader Tardigrade, Dogecoin has been trading within the Gaussian Channel since mid-October on the daily timeframe. Interestingly, when examining the detailed price chart, we see that the middle band of the Gaussian Channel acts as a support level during a minor correction. At this time, Dogecoin is trading around $0.1, before eventually bouncing back at the middle band to peak around $0.48 on December 3.

However, since then, Dogecoin has faced resistance, with a significant decline in the past 24 hours. This decline has now caused the price of Dogecoin to return to the middle band of the Gaussian Channel. With this, Tardigrade's post on X shows that the supportive nature of the Gaussian Channel could act as a launching pad for Dogecoin's next price surge.

Upward Momentum After Recent Collapse

The sharp decline of Dogecoin below $0.27 to reach a low of $0.2663 has marked a significant shift in market sentiment and buyers seem to have seized the low price as a strong re-entry point. Interestingly, this price level lies within the Gaussian Channel, further proving the usefulness of this indicator.

At the time of writing, Dogecoin is trading at $0.34, up 27% in the past few hours after bouncing back at $0.2663. The rapid recovery indicates that market participants are positioning for another bullish run, with the Gaussian Channel serving as the primary indicator for this price action.

If the upward momentum continues to hold, a breakout above the upper boundary of the channel could signal the start of another strong bullish phase. According to Trader Tardigrade's predictions, this could bring Dogecoin into a 100% bullish run up to $0.69. In this case, an important level to watch will be $0.355, which is the upper boundary of the Gaussian Channel.

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