Dogecoin (DOGE) has seen a period of higher price consolidation after a 159% increase from 6.11 to 12.11. On 18.11, the largest memecoin completed a bullish engulfing candle, sparking speculation about the possibility of approaching the historical peak level of 0.73 USD.
1-day chart of Dogecoin. Source: TradingView
With the market refocusing on DOGE, a special indicator has highlighted its historical potential to undergo another parabolic price surge in the coming weeks.
Dogecoin's 'Gaussian Channel' suggests a potential breakout
Market model analyst Tardigrade mentioned in a post on X that Dogecoin is currently on track to repeat its historical price trajectory based on the Gaussian channel.
The Gaussian channel is an indicator that allows traders to identify upper and lower price channels based on asset distribution principles.
Weekly analysis of Dogecoin by Tardigrade. Source: X.com
Through analysis, Doge has received support from the middle line of the Gaussian channel for the third time in its history. If history repeats itself, the trader concludes that “DOGE will experience a great PUMP.”
Meanwhile, independent trader Javion Marks believes that Dogecoin retesting its previous historical high of 9.73 USD is 'almost inevitable.'
Marks outlined the similarities between each parabolic price jump in the years 2016, 2021, and 2024, establishing similar scenarios each time.
Dogecoin can extend its upward trend to 3 USD to 5 USD
Although a parabolic surge above 1 USD has been outlined based on the Gaussian channel, the upper target is calculated based on the law of diminishing returns, estimated approximately based on previous investment return percentages (ROI).
1-week chart of Dogecoin. Source: TradingView
As the chart illustrates, the blue curve represents diminishing returns on a logarithmic scale, where Dogecoin is expected to peak from 3 USD to 5 USD by 2025.
Historically, Dogecoin has faced some resistance below its previous all-time high during the explosion, suggesting that this memecoin may maintain a position above 0.73 USD at a steady pace before undergoing a rapid price discovery phase.
Meanwhile, Santiment, a data analytics platform, has highlighted that DOGE wallet activity has decreased over the past day. From an on-chain perspective, this is a bullish signal, as the platform mentioned.
When the total number of wallets on the network decreases, it is a sign of FUD and capitulation from new traders, often a bullish indicator for the coin (as the liquidated coins are likely to be bought by large sharks and whales holding long-term).
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