Dogecoin (DOGE), which rose 159% from November 6 to November 12, saw a period of higher consolidation. On November 18, the largest memecoin completed a bullish daily candle, welcoming market speculation about its next rally close to its all-time high of $0.73.
Dogecoin 1-day chart. Source: TradingView
As the market turns its attention back to DOGE, one particular indicator has highlighted the historic possibility of another parabolic rally in the coming weeks.
Dogecoin’s “Gaussian Channel” Hints at a Breakout
Market pattern analyst Trader Tardigrade noted in his X post that Dogecoin is currently repeating its historical price trajectory based on the Gaussian channel.
Gaussian Channel is an indicator that allows traders to identify upper and lower channels of price action based on asset distribution principles.
Tardigrade’s Dogecoin weekly analysis. Source: X.com
As analyzed, Doge gained support from the mid-band line of the Gaussian channel for the third time in history. If history repeats itself, the trader concluded, “DOGE will experience an incredible PUMP.”
Meanwhile, independent trader Javion Marks believed that a retest of Dogecoin’s previous all-time high (ATH) of $9.73 was “practically imminent.”
Marks drew parallels between each parabolic rise in 2016, 2021, and 2024, promoting similar setups in each case.
Related: Why Is Dogecoin Price Up Today?
Dogecoin rally could extend from $3 to $5.
The parabolic rise above $1 was accounted for based on a Gaussian channel, while the upper limit target was calculated based on the law of diminishing returns, which approximates the previous return on investment (ROI) ratio.
Dogecoin 1 week chart. Source: TradingView
As you can see in the chart, the blue curve represents a log-scale decline in returns, with Dogecoin expected to peak between $3 and $5 in 2025.
Historically, Dogecoin has faced some resistance just below the previous all-time high during the breakout, so it is possible that Memecoin will take a position above $0.73 at a steady pace before undergoing a quick price discovery.
Meanwhile, data analytics platform Santiment highlighted a decrease in DOGE wallet activity over the past day. From an on-chain perspective, this is an optimistic sign, as stated by the platform.
“When the overall wallet volume on the network decreases, this is a sign of FUD and the capitulation of novice traders, which is often a bullish indicator for the price of a coin (since liquidated coins are more likely to be purchased by larger whales and sharks). “In the long run.”
Related: Price Analysis 11/18: SPX, DXY, BTC, ETH, SOL, BNB, XRP, DOGE, ADA, SHIB
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.