FameEX Hot Topics | Dogecoin Could Hit $5, Predicts 'Gaussian Channel' Model

Dogecoin (DOGE) has entered a consolidation phase after an impressive 159% rally from Nov. 6 to Nov. 12. On Nov. 18, the largest memecoin completed a bullish engulfing candle, sparking speculation of a potential rally toward its all-time high of $0.73. With renewed market interest, one key indicator has highlighted Dogecoin's historical tendency for parabolic price increases, suggesting the possibility of another significant rally in the weeks ahead.

Market pattern analyst Trader Tardigrade highlighted that Dogecoin appears poised to replicate its historical price trajectory based on the Gaussian channel. This technical indicator, which helps traders identify price action boundaries, shows that DOGE has found support at the mid-band line of the Gaussian channel for the third time in its history. Based on these patterns, Tardigrade concluded that Dogecoin could experience an "incredible PUMP" if historical trends hold true.

Adding to the optimism, independent trader Javion Marks believes that Dogecoin’s retest of its previous all-time high of $9.73 is “practically imminent.” Marks observed parallels in Dogecoin’s parabolic rises in 2016, 2021, and 2024, noting similar setups preceding these surges. The Gaussian channel suggests a rise beyond $1 is plausible, though Marks pointed to diminishing returns as a factor in estimating DOGE's upper limit, which could reflect a tempered trajectory based on previous ROI percentages.

Despite the bullish outlook, Dogecoin may encounter resistance near its previous high of $0.73. Historical data suggests that DOGE might consolidate above this level before embarking on rapid price discovery. A gradual climb could pave the way for another significant surge, depending on market conditions and investor sentiment.

Meanwhile, Santiment, a data analytics platform, reported a decline in DOGE wallet activity over the past day. Interestingly, Santiment views this as a bullish signal, interpreting the drop as a sign of fear and capitulation among novice traders. This activity often results in liquidated coins being accumulated by long-term holders or "whales," which could support a price rebound. With these indicators in play, Dogecoin appears positioned for further gains, though market resistance and overall sentiment remain key factors to watch.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.