After increasing 159% from November 6 to November 12, Dogecoin (DOGE) has entered an accumulation phase at a higher price range. On November 18, the largest memecoin in the market completed a bullish engulfing candle on the daily chart, drawing the market's attention with the expectation that DOGE will approach its historical high of $0.73.
As the market once again turns its attention to DOGE, a special indicator has highlighted the high likelihood that this coin will experience a new parabolic price increase in the coming weeks.
Trader Tardigrade, a market model analyst, in a post on platform X, pointed out that Dogecoin is repeating its past price trajectory based on the Gaussian channel indicator.
The Gaussian channel is an indicator that helps traders determine the price range above and below based on the principle of asset distribution.
According to the analysis, DOGE has received support from the middle of the Gaussian channel for the third time in history. If history repeats itself, the analyst concludes that "DOGE will witness a strong price increase."
Meanwhile, independent analyst Javion Marks, believes that Dogecoin testing its previous all-time high of $0.73 is "almost certain." Marks pointed out the similarities between the parabolic price increases in 2016, 2021, and 2024, indicating similar setups at each point in time.
Based on the Gaussian channel, a parabolic price increase above $1 has been predicted, with a maximum target calculated according to the principle of diminishing returns, estimated from the previous return on investment (ROI) ratio.
As illustrated in the chart, the blue curve represents the logarithmic diminishing returns ratio, suggesting that Dogecoin could reach a peak of $3 to $5 by 2025.
History shows that Dogecoin often faces resistance thresholds just below its all-time high during breakout periods. Therefore, it is possible that this memecoin will maintain a price above $0.73 in a stable manner before entering a phase of strong price discovery.
Meanwhile, the data analysis platform Santiment has recorded a decline in DOGE wallet activity in recent days. From an on-chain perspective, this is a positive signal. The platform explains:
"When the total number of active wallets on the network decreases, this is a sign of fear and retreat from new traders, often a bullish signal for the coin, as the coins sold are usually bought and held long-term by large whales."
You can view the DOGE price here.
Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do their own research before making decisions. We are not responsible for your investment decisions.
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According to Cointelegraph
