Technical Analysis Suggests Dogecoin’s Bullish Momentum Remains Intact
Technical analysis shows that Dogecoin’s bullish momentum remains on track, and the meme coin is yet to reach its peak in the current market cycle. This bullish outlook is revealed through a modified version of the 3-day Gaussian Channel indicator.
Particularly, this indicator has been characterized by the appearance of three distinct red zones following the last market cycle, which indicates that Dogecoin is about to create a new 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 Dogecoin’s case, the modified 3-day Gaussian Channel is characterized by green and red zones in different market cycles.
The green zones represent periods of upward momentum, where the price experiences sustained 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 technical analysis posted on social media platform X by crypto analyst Trader Tardigrade, Dogecoin’s price cycles have been defined by three distinct red zones between successive green zones in the modified version of the Gaussian indicator.
Peak Dogecoin Price Target Above $4.3
Since the last peak of $0.7316 in the last cycle, Dogecoin has gone ahead to create three red zones on the modified Gaussian channel. Now that the three red zones have been established, technical analysis suggests that Dogecoin has finally moved past a price bottom.
The next step after this price bottom would be the most significant step, which is a final green zone that could push its price upward toward a new peak.
At the time of writing, Dogecoin is in a green zone in the Gaussian channel. Trader Tardigrade projected a final boss move towards new all-time highs, anticipating the continuation of the current green zone. In terms of a price target, this projected final move would see Dogecoin break above the $1 mark to reach a final peak around $4.3.
Current Market Performance
At the time of writing, Dogecoin is trading at $0.34 and is up by about 2.68% in the past 24 hours. A move to $4.3 would translate to an increase of about 900% from the current price level.
Conclusion
In conclusion, technical analysis suggests that Dogecoin’s bullish momentum remains intact, and the meme coin is yet to reach its peak in the current market cycle. The modified 3-day Gaussian Channel indicator has identified three distinct red zones, which indicate that Dogecoin is about to create a new price peak.
FAQs
Q: What is the Gaussian Channel indicator?
A: The Gaussian Channel is a technical analysis tool that helps identify trends and cycles in price movements.
Q: What do the red zones indicate in the Gaussian Channel?
A: Red zones in the Gaussian Channel indicate periods of correction or consolidation, during which the market pauses before resuming its upward trajectory.
Q: What is the projected price target for Dogecoin?
A: According to technical analysis, the projected price target for Dogecoin is around $4.3, which would be a 900% increase from the current price level.
Q: What is the current market performance of Dogecoin?
A: At the time of writing, Dogecoin is trading at $0.34 and is up by about 2.68% in the past 24 hours.
