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Bitcoin and Dogecoin are the two most watched cryptocurrencies in this cycle, with Bitcoin’s price increase flowing into that of Dogecoin. At one time, the price correlation between the price of Dogecoin and that of Bitcoin was 0.97.
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Interestingly, recent market movements have seen the value of Bitcoin returns above the $100,000 price level and, with the leading cryptocurrency reaching as high as 102,700 in the last 24 hours. However, this has not yet translated into a corresponding increase in the price of Dogecoin, the meme coin breaking below the support at $0.4 during the same period.
Dogecoin’s Recent Performance Amid Bitcoin Surge
Bitcoin has once again crossed the psychological threshold of $100,000 after the price rose 7.5% from a low of $94,900 on December 10. Notably, this upward movement is the latest recovery for Bitcoin after it was rejected at the $100,000 price level. sent shockwaves of liquidation among other cryptocurrencies.
But while Bitcoin has shown resilience, Dogecoin has faced significant challenges in sustaining its upward momentum. Dogecoin managed to rise to $0.48 on December 8, a level it hasn’t touched since 2021. However, a detailed examination of the meme coin’s price action reveals an ongoing struggle with the resistance level of $0.48, which now appears to be resistance. rate to break this market cycle.
At the time of writing, Dogecoin is currently trading at $0.395, which means it has lost about 17% since reaching this 2024 high of $0.48. As it stands, Dogecoin is down nearly 13% over the past seven days, making it the worst performer among the top 10 cryptocurrencies by market cap this time around.
Is Dogecoin’s New All-Time High Still Possible This Cycle?
Market analysts have gave different predictions about the possibility and timing of the price of Dogecoin to achieve new highs in the current cycle. ogecoin finally reached its peak of $0.73 during the crypto bull run in May 2021. The hope of breaking above this level this cycle remains, but the way forward seems to be challenging, especially if the price of Dogecoin would continue to withdraw from the rally of -Bitcoin.
However, you can argue that general consensus for Dogecoin to resume its rise anytime soon. Historically, increases in Dogecoin prices have been due to sudden increases in investor activity, often due to rumors on social media such as X payments and such. For Dogecoin to make it through 2021, a similar wave of enthusiasm will need to emerge with significant trading volume and renewed interest from both retail and institutional investors.
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As the year 2024 comes to an end, a plausible scenario for Dogecoin to reach its peak may appear in early 2025. Meanwhile, changes in the global economic and political environment, including the inauguration of Donald Trump as president, can create optimism for the crypto sector.
Featured image from Bankrate, chart from TradingView
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