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Bitcoin and Dogecoin are two of the most watched cryptocurrencies this cycle, with Bitcoin price increases largely feeding into Dogecoin’s. At one point, the price correlation between the Dogecoin price and that of Bitcoin was 0.97.
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Interestingly, recent market movements have seen the Bitcoin price change returning above the $100,000 price level again, with the leading cryptocurrency reaching as high as 102,700 in the past 24 hours. However, this has yet to translate into a corresponding increase in the price of Dogecoin, with the meme coin break under the support at $0.4 in the same time frame.
Dogecoin’s recent performance amid Bitcoin’s surge
Bitcoin has once again crossed the psychological threshold of $100,000 after a price increase of 7.5% since the low of $94,900 on December 10. Notably, this upward move is the latest recovery for Bitcoin after a rejection at the $100,000 price level that shock waves of liquidations including cryptocurrencies.
But while Bitcoin has shown resilience, Dogecoin has faced notable challenges in maintaining its upward momentum. Dogecoin managed to rise to $0.48 on December 8, a level it had not reached since 2021. However, a detailed examination of the meme coin’s price action reveals a recurring battle with the $0.48 resistance level, which now appears to be the resistance level. level to break this market cycle.
At the time of writing, Dogecoin is currently trading at $0.395, meaning it has lost around 17% since hitting a high of $0.48 in 2024. As it stands now, Dogecoin is down around 13% over the past seven days, making it the worst performer among the top 10 cryptocurrencies by market cap in this time frame.
Is a new Dogecoin all-time record still possible this cycle?
Market analysts have done that gave several predictions on the possibility and timelines of Dogecoin price to reach a new all-time high in the current cycle. ogecoin last reached its peak price of $0.73 during the May 2021 crypto bull run. The prospect of breaking this cycle above this level is still there, but the path forward seems challenging, especially if the Dogecoin price were to continue to break away from Bitcoin’s rally.
You could argue that, though the general consensus is that Dogecoin will resume its uptrend soon. Historically, Dogecoin price increases have been due to sudden spikes in retail investor activity, often due to social media rumors such as Payments on X and the like. If Dogecoin is to surpass its 2021 high, a similar wave of enthusiasm should emerge with significant trading volume and renewed interest from both retail and institutional investors.
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As 2024 draws to a close, a more plausible scenario could emerge in early 2025 where Dogecoin could reach new highs. By then, a change in the global economic and political landscape, including the inauguration of Donald Trump as president, could provide optimism going forward. crypto sector.
Featured image of Bankrate, chart from TradingView