The popular meme coin, Dogecoin, has recently entered the Gaussian Channel following a substantial price crash. This technical indicator suggests that a 100% price jump could be on the horizon for the cryptocurrency.
The Importance of the Gaussian Channel
The Gaussian Channel is a lesser-known but powerful technical indicator that identifies areas of price support and resistance. It plots two curves derived from normal distribution to highlight regions where a cryptocurrency’s price is trading at extreme highs or lows relative to its recent range.
According to crypto analyst Trader Tardigrade, Dogecoin’s recent decline has seen it interact with the Gaussian Channel, indicating the potential for a significant price increase.
#Dogecoin has entered the Gaussian Channel on the daily chart 🔥$Doge halted its downtrend at the mid-band of the channel, highlighting the supportive nature of the Gaussian Channel.$Doge will go back to the sky 🚀 pic.twitter.com/3BTgfJCXRf
— Trader Tardigrade (@TATrader_Alan) December 20, 2024
Recent Price Action
In the past two days, Dogecoin’s price broke below supports at both $0.4 and $0.3, eventually reversing after a quick dip below $0.27.
This dramatic decline marked an important shift in market sentiment, with buyers seizing the low price as a strong reentry point. At the time of writing, Dogecoin is trading at $0.34, having increased by 27% in the past few hours after bouncing up to $0.2663.
Momentum Builds Following the Crash
The quick rebound suggests that market participants are positioning for another rally, with the Gaussian Channel acting as a prime indicator for this price action.
Trader Tardigrade’s prediction suggests that Dogecoin could see a 100% rally to $0.69 if the momentum continues to sustain itself. An important level to watch will be $0.355, which is the upper boundary of the Gaussian Channel.
#Dogecoin Flipped the Resistance into Support 🔥
Price rejection is observed at the Ascending Trend Zone.
This is a good sign, a promising indication that we're on the right path 🚀 pic.twitter.com/iTA9uyfTdU— Trader Tardigrade (@TATrader_Alan) December 21, 2024
Expert Opinions
Crypto analyst Trader Tardigrade shared on social media platform X, “Dogecoin has been trading above the Gaussian Channel since the middle of October on the daily timeframe. The supportive nature of the Gaussian Channel could act as a launchpad for Dogecoin’s next rally”
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