Potential indicators suggest Dogecoin could rise above $5

From November 6 to 12, Doge (DOGE) entered a consolidation phase after rising 159%. On November 18, Doge entered the bullish engulfing mode again, which led investors to speculate whether it would rebound to its historical high of $0.73. As investors rekindle their investment interest in Doge, a key indicator suggests that the token may repeat its previous parabolic uptrend and stage a dramatic surge in the coming weeks. Market pattern analyst Trader Tardigrade emphasized that Doge is currently repeating its historical price trajectory according to the Gaussian channel, which is an indicator that allows traders to identify the upper and lower channels of price behavior based on the principle of asset distribution. Based on this pattern, Tardigrade concluded that if the historical trend holds true, Doge may experience an "incredible surge". Independent trader Javion Marks believes that Doge may test its historical high of $0.73 in an extremely short period of time, which has intensified the market's optimistic sentiment. Marks observed similarities in Doge's parabolic rallies in 2016, 2021, and 2024, and pointed out that these surges were preceded by similar patterns. Although Marks noted that diminishing returns is one of the factors limiting the upside potential of DOGE investments, the Gaussian channel indicator suggests that Doge surpassing $1 is reasonable. While the long-term outlook is bullish, Doge will face resistance before breaking its previous high of $0.73. Historical data suggests that Doge's price may consolidate above this level and then enter a rapid price discovery phase. The gradual price appreciation paves the way for another explosive rally, depending on market conditions and investor sentiment. Meanwhile, data analytics platform Santiment reported a decline in Doge wallet activity over the past day. Interestingly, Santiment interprets this as a bullish signal, viewing the decline in activity as a sign of fear and capitulation by novice traders. This activity typically leads to long-term holders or "whales" accumulating the tokens that have been liquidated by novice traders, which may drive the price to rebound further. With these indicators presenting an optimistic sentiment, Doge appears poised for further upside, but market resistance and overall market sentiment should still be monitored.