Dogecoin to $5? It is possible according to the ‘Gaussian channel’ model.
Following a 159% increase between November 6 and November 12, Dogecoin (DOGE) has shown a period of high level consolidation. In the year On November 18, the largest memecoin completed a daily bullish candle that received a daily high of $0.73 to the higher market expectations.
Dogecoin 1-day chart. Source: TradingView
As the market turns its attention back to the DOGE, one particular indicator highlights the historic possibility of another parabolic rally in the next few weeks.
Dogecoin's “Gaussian Channel” suggests a breakout
Trader Tardigrade, a market pattern analyst, mentioned in a X post that Dogecoin is on the way to repeat the historical price path based on the Gaussian channel.
Gaussian Channel is an indicator that allows traders to identify the upper and lower channels of price action based on the principle of asset distribution.
Dogecoin Weekly Analysis by Tardigrade. Source: X.com
As analyzed, the Doge found support from the middle band line of the Gaussian channel for the third time in history. If history repeats itself, the trader concluded, “DOGE will experience an incredible PUMP.”
Meanwhile, Javion Mark, an independent trader, believes that Dogecoin is “virtually inevitable” to retest its previous all-time high (ATH) at $9.73.
Marks showed similarities between each of the parabolic developments in 2016, 2021 and 2024, optimizing the same settings on each occasion.
Related: Why Is Dogecoin Price Rising Today?
Dogecoin rally may extend to $3 to $5.
A parabolic increase of over $1 is defined based on a Gaussian channel, the upper limit target is calculated based on the laws of diminishing returns, which is estimated as a percentage of the previous return on investment (ROI).
Dogecoin 1-week chart. Source: TradingView
As shown in the chart, the blue curve represents diminishing returns on a logarithmic scale, with Dogecoin expected to earn between $3 and $5 in 2025.
Historically, Dogecoin has faced a bit of resistance below the previous all-time high range before making a quick price discovery, so there is a possibility that memecoin could quickly grind to somewhere above $0.73.
Meanwhile, data analytics platform Sentiment has highlighted the decline in DOGE wallet activity over the past day. From Onchain's point of view, this is a sign of cruelty, as the forum mentioned.
“When the total number of network wallets decreases, it's a sign of FUD and the exposure of startup traders, which is often an indicator of the coin's value (because those liquid coins are bought by the big whales and sharks who trade them. Long term.”
Related: Price Analysis 11/18: SPX, DXY, BTC, ETH, SOL, BNB, XRP, DOGE, ADA, SHIB
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
