Dogecoin Holds Above $0.22, Long-Term Rally Intact Despite Recent Fluctuations

Dogecoin has maintained its position above a crucial support level at $0.22, despite recent attempts to break below. Amidst these fluctuations, a notable technical indicator suggests that the cryptocurrency's long-term rally remains intact.

The Gaussian Channel, a popular momentum tool, has been used by crypto analyst Trader Tardigrade to highlight Dogecoin's bullish momentum. Despite the current selling pressures, the indicator suggests that the meme coin's uptrend is still in play.

Dogecoin's price trajectory has been marked by a decline since mid-January, with the cryptocurrency falling by as much as 47% from its lower high of $0.4159 on January 18. This correction is even more pronounced when considering its multi-year high of $0.475, which it achieved on December 9, 2024, from which Dogecoin has now corrected by approximately 54%.

This notable correction has also seen the development of a few bearish signals on the Dogecoin price chart. One such bearish development is the rejection at a macro resistance and the failure to reclaim the macro golden pocket in the recent week.

However, despite the notable correction in the Dogecoin price, the meme coin seems to be still trading in an uptrend in the longer term. This long-term outlook is revealed through the analysis of Dogecoin on the weekly candlestick timeframe using the Gaussian Channel.

The Gaussian Channel is a lesser-known technical analysis tool that helps identify trends and cycles in price movements by highlighting green and red zones in different market cycles. The green zones represent periods of upward momentum, where the price is expected to keep growing. On the other hand, red zones indicate periods of correction or consolidation, during which the market pauses before resuming its upward trajectory.

According to a Dogecoin price chart shared by crypto analyst Trader Tardigrade on social media platform X, Dogecoin entered into its most recent green zone on the Gaussian Channel in 2024. However, despite the recent correction, it has remained in this green zone, indicating that Dogecoin’s uptrend is still active in the long term.

With the Gaussian Channel still indicating the green zone for Dogecoin, the rally could resume anytime soon. According to Trader