News from the world of cryptocurrencies seems to have taken a promising turn with predictions of an imminent price surge for one particular cryptocurrency, Dogecoin. The evidence rests upon a crucial but relatively obscure tool, the Gaussian Channel (GC), an important component in the technical analysis of the markets.
Recently referred to by Trader Tardigrade, a crypto analyst who chooses to remain anonymous behind a pseudonym, the Gaussian Channel on Dogecoin’s weekly chart has flashed an optimistic shade of green. This indicates that the cryptocurrency could soon experience a surge towards its next growth wave.
The Gaussian Channel is an uncommonly-used tool, especially when compared to more popular technical indicators like moving averages, the Relative Strength Index (RSI), and Moving Average Convergence Divergence (MACD). The Gaussian Channel uses two curves derived from the standard distribution to identify areas where the price deviates extremely from its recently established range.
Dogecoin is noted to respond positively to this trend, with its price often experiencing a significant uptick whenever it reaches the green zone on the Gaussian Channel. This suggests that despite the tool’s relative obscurity in crypto analysis, it holds a powerful influence over Dogecoin’s trajectory.
Trader Tardigrade’s recent review of a DOGE weekly chart reveals the cryptocurrency hovering in the green zone of the Gaussian Channel. The crypto analyst suggests this as a potential precursor to a major upward shift, pointing out that, “When the time is up, #Dogecoin will surge incredibly.”
Taking a closer look into the Gaussian Channel’s past influence on Dogecoin, two prior instances reveal similar patterns. The first green signal on the Gaussian Channel in 2016 enabled DOGE to set off on a multi-year uptrend, reaching several all-time highs in 2018. A repeat of this trend arose in 2021 and 2022, pushing Dogecoin to soar to its current all-time high.
While no one can predict precise price movements, historical trends indicate that Dogecoin’s next few years could potentially witness a bullish run. According to Trader Tardigrade, this surge might propel DOGE past its current all-time high and explore new price terrains. The analyst’s most hopeful outlook is of Dogecoin breaching its $0.73 barrier this year and touching $1 by 2025. The final predicted price target puts Dogecoin above $6.5, a staggering increase of over 5,100% from its current price level.
At present, Dogecoin trades at $0.1235 and has witnessed a decrease of 9.44% over the past week. This price decline creates a sense of uncertainty among enthusiasts; however, if the predictions hold true, Dogecoin has several price resistance levels to break through before a rally can be established.
Recent data from IntoTheBlock reveals that Dogecoin whales, investors who hold significant quantities of the cryptocurrency, have been downsizing their holdings over the past year, causing their total holdings to drop from 45.3% a year ago to around 31% today. This sell-off poses an interesting question: can Dogecoin overcome these internal and external obstacles for another memorable surge? Only time will tell.
