A prominent crypto analyst has sparked a thought-provoking debate on the social media platform X, suggesting that the price of Dogecoin may be similar to the performance of XRP during the previous bull market.
While many of the major cryptocurrencies are rising to record highs in the 2021 bull run, XRP is struggling to get by its previous height. Now, crypto analyst Tony “Bull” Severino has drawn comparisons with Dogecoin to show an action of the same valuenoting the question of if Dogecoin is “dragging XRP in this cycle?”
Drawing Parallels Between XRP and Dogecoin Price
In accordance with technical analysis of XRP and Dogecoin price charts that Tony shared on social media X, the price action of Dogecoin over the past few years mirrors the price action of XRP over the years. Despite being one of the top cryptocurrencies by market cap, XRP has faced unique challenges that slowed its rise alongside Bitcoin and Ethereum during the bull run.
Although XRP saw a significant price increase and reached $1.95, it faced resistance at the 0.786 Fib extension from the 2020 low. As such, the price of XRP failed to surpass the entire 2018 high of $3.84 before the bear market of 2022, which is disappointing for many bullish supporters. Since then, XRP has traded mostly between $0.7 and $0.5 without the sustained momentum needed to regain its previous highs.
The analyst also highlighted the price action of Dogecoin using the monthly candlestick chart of the DOGE/USD pair. He noted that the price of Dogecoin recently rejected the level of the 0.5 Fibonacci extension from its 2022 low, a pattern that closely mirrors the performance of XRP, where the price was similarly rejected from the 0.5 Fibonacci extension from its 2020 low.
What Does This Mean for DOGE?
The crypto community is no stranger to repeating market cycles, and there is still a chance for a market leader like Dogecoin to follow in XRP’s footsteps in 2021. If this XRP pattern is to play out, it will keep Dogecoin price depressed in the current bull cycle. Specifically, the price of Dogecoin may face significant resistance at the Fibonacci extension level of 0.786, which is close to $0.42.
Tony Severino’s analysis comparing the two cryptocurrencies sparked discussions among many crypto participants. One participant, @WLitecoin, he noted that this phenomenon is very clear, indicating that it is not uncommon for a cryptocurrency to perform very well in one cycle and repeat that success in the next. They argue that many top buyers from the 2021 cycle are likely to act as resistance to the current cycle and create downward pressure on Dogecoin’s price.
On the other hand, another analyst (@JVNTrade) you believe two very different cryptocurrencies. According to them, Dogecoin he has ties to Donald Trump and Elon Musktherefore its value action it will play differently from XRP.
At the time of writing, DOGE is trading at $0.135 and is up 10.82% in the last 24 hours. XRP is trading at $0.55 and is down 0.73% in the last 24 hours.
The featured image was created with Dall.E, a chart from Tradingview.com
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