The recent price movements in the last two days showed the Dogecoin price Fracture below the supports in quick succession at both $0.4 and $0.3, finally reversing after a quick break below $0.27 in the last 24 hours. Since then, the meme coin appears to be gaining momentum, with a little-known but significant indicator pointing to at least a 100% increase from this point. Accordingly Technical analysis by According to crypto analyst Trader Tardigrade, Dogecoin has entered the Gaussian channel due to the recent decline.
The importance of the Gaussian channel for Dogecoin price
The Gaussian channel is a comparatively lesser known technical indicator. However, it is a powerful indicator that identifies areas of price support and resistance by drawing two curves derived from the normal distribution to identify regions where the price of a cryptocurrency is at extreme highs or highs compared to its current range lows are traded.
In the case of Dogecoin, the daily candlestick timeframe technical price analysis shows that the meme coin is now interacting with the Gaussian channel.
According to a chart posted by crypto analyst Trader Tardigrade on the social media platform Interestingly, a detailed look at the price chart shows that the middle band of the Guassian channel served as a support level during a minor correction. At the time, Dogecoin was trading at around $0.1 before eventually recovering in the middle of the band and peaking at around $0.48 on December 3rd.
Since then, however Dogecoin encountered resistance, with a significant decline in the last 24 hours. This decline has now caused the Dogecoin price to return to the middle of the Gaussian channel. With this in mind, Tardigrade’s contribution to X suggests that the Gaussian channel has a supporting nature could act as a launch pad for Dogecoin’s next rally.
Momentum is increasing after the recent crash
Dogecoin’s dramatic drop below $0.27 to a low of $0.2663 marked a significant shift in market sentiment and buyers seem to have taken advantage of the low price as a strong re-entry point. Interestingly, this price point lies on the Gaussian Channel, further proving the usefulness of this indicator.
At the time of writing, Dogecoin is trading at $0.34, having surged 27% in the past few hours after rising to $0.2663. The quick recovery suggests that market participants are bracing for another rally, with the Gaussian channel acting as the main indicator of this price movement.
If the The momentum continuesA breakout above the upper boundary of the channel could signal the start of another strong rally. According to trader Tardigrade’s prediction, this could see Dogecoin rise 100% to $0.69. In this case, an important level to watch is $0.355, which represents the upper boundary of the Gaussian channel.
Featured image created with Dall.E, chart from Tradingview.com