Modified 3-Day Gaussian Channel Reveals Key Red Zones

Technical analysis shows Dogecoin Bullish momentum remains on track The meme currency has not yet reached its peak in the current market cycle. This interesting bullish outlook is revealed by a modified version of the 3-day Gaussian Channel indicator.

In particular, this indicator was characterized by the appearance of three distinct red areas after the last market cycle, indicating that Dogecoin About to create a new price peak.

Understanding the 3-day Gaussian channel and the red areas

A 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 marked by green and red areas in different market cycles.

Green areas represent periods of upward momentum, where the price is experiencing sustained growth. On the other hand, red areas indicate periods of correction or consolidation, during which the market pauses before resuming its upward trajectory.

According to the technical analysis published on the social media platform X By cryptocurrency analyst Trader TardigradeDogecoin price cycles are identified by three distinct red areas between successive green areas in the modified version of the Gaussian indicator.

The completion of these three red zones is followed by a final move higher, where Dogecoin pushes above the last high in the previous cycle to create another high in the new cycle. As shown in the price chart below, these red and green areas of the Gaussian Channel appeared consistently on the 3-day candlestick time frame and span multi-year periods, and each area can extend from several weeks to months.

Dogecoin’s peak price target is above $4.3

Since the recent peak of $0.7316 in the last session, Dogecoin has advanced to create three red zones on the modified Gaussian channel. Now that the three red zones have been established, technical analysis indicates that Dogecoin has finally crossed the price bottom. Next step After this price bottom It will be the most important step, the final green area that can pay its price Up towards a new peak.

At the time of writing, Dogecoin Located in the green area In the Goasian Channel. The Tardigrade trader has forecast an eventual move towards all-time highs, anticipating a continuation of the current green zone. In terms of price targets, this expected final move will see Dogecoin Break above the $1 mark To reach the final peak around $4.3.

At the time of writing, Dogecoin is trading at $0.34 and has risen by approximately 2.68% in the past 24 hours. A move to $4.3 would translate into an increase of about 900% from the current price level.

Featured image from CCN, chart from TradingView