As a seasoned researcher with over two decades of experience in the ever-evolving world of cryptocurrencies, I find myself intrigued by the recent developments surrounding Dogecoin (DOGE). The 159% surge between Nov. 6 and Nov. 12, followed by a period of consolidation, has certainly piqued my interest.
After increasing by 159% from November 6th to November 12th, Dogecoin (DOGE) has shown signs of stabilization in a higher price range. On November 18th, the popular meme coin closed a bullish daily candle, sparking speculation among traders about its potential rise towards its record high of $0.73.
As the market refocuses on Dogecoin (DOGE), a specific metric suggests that it could be poised for another steep upward trend in the coming weeks, based on its past tendencies.
Dogecoin’s “Gaussian Channel” hints at breakout
According to a recent post by Trader Tardigrade, who specializes in analyzing market patterns, Dogecoin appears likely to follow a similar price trend as it has done historically, following the Gaussian channel’s prediction.
A Gaussian channel serves as a tool for traders, helping them determine the boundaries of a price’s movement, which are influenced by the distribution pattern of the asset.
From my analysis, Dogecoin appears to have garnered backing from the median line of the Gaussian channel for a third time. If past trends continue, it seems reasonable to predict that “Dogecoin could see significant price increase.
At the same time, the self-reliant trader, Javion Marks, felt it was nearly inevitable that Dogecoin would test its old record peak of $9.73 again.
In 2016, 2021, and 2024, Marks noticed that the market patterns resembled a parabolic rise in each case, creating comparable opportunities for investment setup on every instance.
Dogecoin rally could extend as far as $3 to $5
The projected upward trend, surpassing $1, is guided by the Gaussian channel’s pattern. However, the maximum potential target is determined using the principle of diminishing returns, which is approximately based on its past Return on Investment (ROI) percentage.
According to the graph, the blue line symbolizes a gradual decrease in returns (for Dogecoin) on a logarithmic scale, predicting a peak value ranging from $3 to $5 by the year 2025.
Previously, Dogecoin has encountered some obstacles close to its past record peak levels while attempting to surge forward. It’s plausible that this digital currency could gradually establish a foothold above approximately $0.73 and then potentially experience swift price growth as it continues exploring new heights.
Currently, Santiment, a data analysis tool, points out that Dogecoin (DOGE) wallet activity has decreased in the last 24 hours. However, from a blockchain standpoint, this could be considered a positive indication since reduced activity might suggest accumulation, as the platform suggests.
“When a network’s overall amount of wallets declines, it is a sign of FUD and capitulation from novice traders that is often a bullish indicator for the coin’s price (since those liquidated coins are likely being bought by larger whales and sharks who are hodling for the long-term.”
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2024-11-20 02:13