FameEX Hot Topics | 'Gaussian Channel' Model Suggests Dogecoin Could Reach $5

Dogecoin (DOGE) has entered a period of consolidation after an impressive 159% rally between Nov. 6 and Nov. 12. On Nov. 18, the leading memecoin completed a bullish engulfing candle, fueling speculation of another potential rally toward its all-time high of $0.73. Renewed interest in DOGE has drawn attention to a key technical indicator that suggests the cryptocurrency might be poised for another significant rally in the coming weeks.

Market pattern analyst Trader Tardigrade identified that Dogecoin appears to be mirroring its historical price trajectory based on the Gaussian channel. This technical tool, which helps traders identify the upper and lower boundaries of price action, indicates that DOGE has gained support at the mid-band line of the channel for the third time in its history. Based on these patterns, Tardigrade predicted that Dogecoin could experience an "incredible PUMP" if historical trends continue to play out.

Independent trader Javion Marks also expressed optimism, stating that Dogecoin’s retest of its previous all-time high of $9.73 is “practically imminent.” Marks noted similarities in the parabolic rises DOGE experienced in 2016, 2021, and 2024, observing similar setups during each rally. While the Gaussian channel suggests a rise beyond $1 could be possible, Marks highlighted diminishing returns as a consideration in estimating the cryptocurrency's upper limit, pointing to a more measured trajectory based on previous ROI percentages.

Despite the optimistic outlook, Dogecoin may face resistance near the $0.73 mark. Historical data indicates that DOGE has previously consolidated just below its all-time high before breaking out. A steady climb above this level could create the foundation for another significant surge, provided market sentiment remains favorable.

Meanwhile, Santiment, a data analytics platform, noted a decline in DOGE wallet activity over the past day. This decline, often interpreted as a bullish sign, reflects fear and capitulation among novice traders. Santiment explained that such activity typically results in liquidated coins being absorbed by long-term holders or "whales," potentially supporting a price rebound. With these factors in play, Dogecoin’s trajectory will depend on market sentiment, resistance levels, and overall trading activity.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.