Technical analysis shows Dogecoin the upward trend is still on track and the meme coin has not yet reached its peak in the current market cycle. This engaging bullish outlook is revealed by a modified version of the 3-day Gaussian Channel indicator.
Specifically, this indicator is characterized by the appearance of three distinct red zones after the last market cycle, which indicates that Dogecoin will soon create a modern 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 the case of Dogecoin, the modified 3-day Gaussian Channel is characterized by green and red zones in different market cycles.
Green zones represent periods of growth dynamics in which the price remains at a constant level of growth. On the other hand, red zones indicate periods of correction or consolidation during which the market pauses before resuming its upward trajectory.
According to a technical analysis published on social media platform X by cryptocurrency analyst Trader TardigradeDogecoin’s price cycles have been defined by three distinct red zones between successive green zones in a modified version of the Gaussian indicator.
Once these three red zones are completed, a final upward move occurs where Dogecoin pushes above the last high of the previous cycle, creating another high in the modern cycle. As shown in the price chart below, these red and green zones in the Gaussian Channel consistently appear on 3-day candle time frames and span multi-year periods, and each zone can span multiple weeks or months.
Dogecoin top price target above $4.3
Since its recent high in the last cycle at $0.7316, Dogecoin has formed three red zones in the modified Gaussian channel. Now that three red zones have been established, technical analysis suggests that Dogecoin has finally broken above the price low. Next step after this price bottom would be the most critical step, i.e. the last green zone that could escalate its price up towards the modern peak.
At the time of writing Dogecoin is located in the green zone in the Guassian Channel. Trader Tardigrade predicted the final boss move towards modern all-time highs, anticipating a continuation of the current green zone. In terms of price target, this predicted final move will be for Dogecoin cross the $1 mark to reach a final peak around $4.3.
At the time of writing, Dogecoin is trading at $0.34 and has increased by approximately 2.68% in the last 24 hours. A move to $4.30 would mean a price escalate of approximately 900% over the current price level.
Featured image from CCN, chart from TradingView