3-day modified Gaussian channel reveals key red areas

Technical analysis shows Dogecoin bullish momentum is still on track and the meme coin has not yet reached its peak in the current market cycle. This interesting bullish outlook is revealed through a modified version of the 3-day Gaussian channel indicator.

In particular, this indicator was characterized by the appearance of three distinct red zones following the last market cycle, indicating 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 the case of Dogecoin, the 3-day modified Gaussian channel is characterized by green and red zones in different market cycles.

Green areas represent periods of upward momentum, where the price is experiencing sustained growth. In contrast, red zones indicate periods of correction or consolidation, during which the market takes a pause before resuming its upward trajectory.

According to technical analysis published on social media platform by crypto analyst Trader TardigradeDogecoin price cycles have been defined by three distinct red zones between successive green zones in the modified version of the Gaussian indicator.

The completion of these three red zones is followed by a final move upward, where Dogecoin surpasses the last high of the previous cycle to create another high in the new cycle. As shown in the price chart below, these red and green zones of the Gaussian channel have appeared consistently over the 3-day candlestick period and span periods of several years, and each zone may expand over several weeks or even months.

Maximum Dogecoin price target above $4.3

Since the last high of $0.7316 during the last cycle, Dogecoin has created three red zones on the modified Gaussian channel. Now that the three red zones have been established, technical analysis suggests that Dogecoin has finally broken through a price floor. The next step after this low price would be the most significant step, which is a final green zone that could push its price up upwards to a new high.

At the time of writing, Dogecoin is in a green zone in the Guassian canal. Trader Tardigrade predicted a final boss move to new all-time highs, anticipating the current green zone to remain. In terms of price target, this final projected move would see Dogecoin exceed the $1 mark to reach a final peak around $4.3.

At the time of writing, Dogecoin is trading at $0.34 and is up approximately 2.68% over the past 24 hours. A move to $4.3 would result in an increase of approximately 900% from the current price level.

Featured image from CCN, chart from TradingView