Technical analysis shows Dogecoin’s bullish momentum is still on track and the meme coin is yet to reach its peak in the current market cycle. This interesting bullish outlook is revealed through a modified version of the 3-day Gaussian Channel indicator.
Particularly, this indicator has been characterized by the appearance of three distinct red zones following the last market cycle, which indicates that Dogecoin is about to create a new price peak.
Understanding The 3-Day Gaussian Channel And Red Zones
The Gaussian Channel is a technical analysis tool that helps identify trends and cycles in price movements. In Dogecoin’s case, the modified 3-day Gaussian Channel is characterized by green and red zones in different market cycles.
The green zones represent periods of upward momentum, where the price experiences sustained growth. On the other hand, red zones indicate periods of correction or consolidation, during which the market pauses before resuming its upward trajectory.Â
According to technical analysis posted on social media platform X by crypto analyst Trader Tardigrade, Dogecoin’s price cycles have been defined by three distinct red zones between successive green zones in the modified version of the Gaussian indicator.
The completion of these three red zones is followed by a final move upward, where Dogecoin pushes above the last peak in the previous cycle to create another peak in the new cycle. As shown in the price chart below, these red and green zones in the Gaussian channel have consistently appeared on the 3-day candlestick timeframe and span multi-year periods, and each zone can span multiple weeks to months.
Peak Dogecoin Price Target Above $4.3
Since the last peak of $0.7316 in the last cycle, Dogecoin has gone ahead to create three red zones on the modified Gaussian channel. Now that the three red zones have been established, technical analysis suggests that Dogecoin has finally moved past a price bottom. The next step after this price bottom would be the most significant step, which is a final green zone that could push its price upward toward a new peak.
At the time of writing, Dogecoin is in a green zone in the Guassian channel. Trader Tardigrade projected a final boss move towards new all-time highs, anticipating the continuation of the current green zone. In terms of a price target, this projected final move would see Dogecoin break above the $1 mark to reach a final peak around $4.3.Â
At the time of writing, Dogecoin is trading at $0.34 and is up by about 2.68% in the past 24 hours. A move to $4.3 would translate to an increase of about 900% from the current price level.
Featured image from CCN, chart from TradingView
