Despite the volatility surrounding Dogecoin, the cryptocurrency continues to hold firm above essential support levels at $0.22, even in the face of repeated threats to drop below this threshold. Recent analysis indicates that a vital technical indicator points to the persistence of Dogecoin’s long-term bullish momentum.
Crypto analyst Trader Tardigrade has utilized the Gaussian Channel—a momentum tool favored among traders—to illustrate that Dogecoin is still positioned for a rally, irrespective of current selling pressures.
Gaussian Channel Highlights Persistent Bullish Momentum for Dogecoin
Since mid-January, Dogecoin has been on a downward trajectory, with a notable decline of approximately 47% from its recent high of $0.4159 recorded on January 18. This downturn is particularly significant when considering the cryptocurrency’s multi-year peak of $0.475 reached on December 9, 2024, marking a total correction of around 54%.
This substantial correction has fostered several bearish signals on Dogecoin’s price chart, including a rejection at a key macro resistance level and the inability to reclaim the macro golden pocket in the preceding week.
Nonetheless, even in light of these challenges, Dogecoin appears to be navigating an overall uptrend when examined over a more extended timeframe. This optimistic outlook is made apparent through the analysis of the cryptocurrency on the weekly candlestick timeframe utilizing the Gaussian Channel.
The Gaussian Channel is a relatively obscure technical analysis tool that aids traders in identifying price trends and cycles, highlighting periods of upward momentum in green and periods of correction or consolidation in red. Green zones denote phases where elevated price growth is anticipated, while red zones indicate corrective phases prior to a resumption of upward movement.
According to insights shared by Trader Tardigrade on social media, Dogecoin transitioned into a new green zone in the Gaussian Channel in 2024. Despite its recent downturn, it remains firmly within this zone, suggesting that Dogecoin’s long-term uptrend remains intact.
Image From X: Trader Tardigrade
Forecasting Long-Term Price Targets for DOGE
As the Gaussian Channel indicates a prevailing green zone for Dogecoin, a rally could materialize imminently. Trader Tardigrade projects this rally might propel DOGE beyond critical resistance levels at $0.3, $0.4, and its recent multi-year high of $0.475.
Should momentum and purchasing pressure escalate, Dogecoin might even aim to retest its all-time peak of $0.7316, untouched since the apex of the 2021 bull run.
Further extending beyond these short-term goals, Tardigrade’s analysis anticipates that the meme cryptocurrency’s trajectory could surpass the $1 mark. There are expectations for an aggressive rally that could see Dogecoin potentially climbing as high as $4.1. At present, Dogecoin is trading at $0.247, reflecting a 1.5% increase in the last 24 hours, yet down by 25% since the beginning of February.
Featured image from TheStreet, chart from TradingView
