Technical analysis shows Dogecoin’s bullish momentum is still on track and the meme coin is yet to reach its peak in the current market cycle. This interesting bullish outlook is revealed through a modified version of the 3-day Gaussian Channel indicator.

Particularly, this indicator has been characterized by the appearance of three distinct red zones following the last market cycle, which indicates 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 Dogecoin’s case, the modified 3-day Gaussian Channel is characterized by green and red zones in different market cycles.

The green zones represent periods of upward momentum, where the price experiences sustained growth. On the other hand, red zones indicate periods of correction or consolidation, during which the market pauses before resuming its upward trajectory. 

According to technical analysis posted on social media platform X by crypto analyst Trader Tardigrade, Dogecoin’s 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 pushes above the last peak in the previous cycle to create another peak in the new cycle. As shown in the price chart below, these red and green zones in the Gaussian channel have consistently appeared on the 3-day candlestick timeframe and span multi-year periods, and each zone can span multiple weeks to months.

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Author: Scott Matherson