Dogecoin price action is currently locked between two key technical levels, the large gold pocket and the macro 0.5 Fibonacci retracement level. This view was highlighted crypto analyst Kevin (@Kev_Capital_TA) on social media X. It is interesting that according to the analyst, the quick end of Dogecoin does not depend on internal fluctuations but on external factors, mainly on the performance of Bitcoin.
The influence of Bitcoin on Dogecoin’s Market Movement
As the largest cryptocurrency in the world, the general feeling towards other cryptocurrencies is usually always linked to Bitcoin. Periods of peak entry in Bitcoin are always highlighted by entry in other cryptocurrencies, and vice versa, except for altcoin seasons.
Since i the biggest meme characterDogecoin is one of the biggest expressions of sentiment in Bitcoin. According to data from IntoTheBlock, Dogecoin currently has a price correlation of 0.77 with Bitcoin on a scale of 1. Interestingly, this correlation sometimes stays even in the 0.9 range, especially during the circles. In his analysis, crypto analyst Kevin noted that the current price of Dogecoin is not self-determining but rather heavily influenced by the performance of Bitcoin.
As it is, recent market forces have seen the value of Dogecoin stuck in the middle big gold pack and 0.5 Fibonacci levels. In technical analysis, the gold pocket is the region between the recovery levels of 61.8% and 65%. These levels, often used in technical analysis, serve as support and resistance areas, and their violation in any direction can lead to significant breakouts.
Patience as Strategy
Dogecoin price has been experiencing a lack of momentum and is struggling to replicate the remarkable rallies seen in October and November. During that time, Dogecoin caught the market’s attention with an impressive increase of over 400%, largely driven by the enthusiasm before and after the US presidential election.
However, that is a bullish concept it seems like it’s over, leaving the meme coin now hovering around the $0.4 mark. In addition, Bitcoin’s inability to sustain a significant break above the $100,000 price level has cast a shadow over altcoins such as Dogecoin, whose performance tends to match Bitcoin’s market behavior.
Despite the current price position, crypto analysts like Kevin remain optimistic about the meme coin. Mentions throughout social media are always cheap, and technical analysis suggests that the price of Dogecoin there is still a lot of room to run.
“I don’t see anything that tells me that the cycle is over; therefore, this should increase quickly enough without temporary noise,” he said you made a comment.
At the time of writing, Dogecoin is trading at $0,404 and is down about 3.5% in the last 24 hours. Bitcoin, on the other hand, is trading at $99,800 and is down 0.8% in 24 hours.
The featured image was created with Dall.E, a chart from Tradingview.com
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