Is A New ATH Still Feasible This Cycle?
Bitcoin and Dogecoin are two of the most watched cryptocurrencies this cycle, with the rise in Bitcoin’s price mainly flowing into Dogecoin’s price. At one point, the correlation between Dogecoin price and Bitcoin price was 0.97.
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Interestingly, recent market movements have seen Bitcoin prices rise Return to price levels above $100,000 The price of the leading cryptocurrency reached as high as 102,700 again in the past 24 hours. However, this has yet to translate into a corresponding increase in the price of Dogecoin, while the memecoin Breaking below support level The price in the same time frame was $0.4.
Dogecoin’s recent performance amid Bitcoin surge
Since Bitcoin hit a low of $94,900 on December 10, its price has risen 7.5%, once again breaking through the psychological $100,000 mark. Notably, this rise is Bitcoin’s latest rally following rejection from the $100,000 price level. triggering shockwaves of liquidation Other cryptocurrencies.
While Bitcoin has shown resilience, Dogecoin faces significant challenges in sustaining its upward momentum. Dogecoin managed to rebound to $0.48 on December 8, a level it has not touched since 2021. However, a detailed examination of the memecoin’s price action shows that Dogecoin has repeatedly struggled with resistance at $0.48, which now appears to be the level of resistance to break out of this market cycle.
As of this writing, Dogecoin is currently trading at $0.395, which means it has fallen approximately 17% since reaching a high of $0.48 in 2024. As it stands, Dogecoin is down about 13% over the past seven days, making it the worst performer among the top 10 cryptocurrencies by market capitalization during that time.
Is it possible that Dogecoin will hit a new all-time high this cycle?
Market analysts have Different predictions are offered On the likelihood and timeline of Dogecoin price reaching all-time highs in the current cycle. Dogecoin last reached a peak price of $0.73 during the crypto bull run in May 2021. The prospect of a break above this level this cycle remains, but the path forward appears challenging, especially if Dogecoin price continues to detach from Bitcoin’s rally.
However, you might argue general consensus Dogecoin will resume its uptrend soon. Historically, Dogecoin’s price spikes have been due to sudden surges in retail investor activity, often due to rumors on social media about things like X Payments. For Dogecoin to surpass its 2021 highs, a similar wave of enthusiasm will be needed, along with massive trading volumes and renewed interest from retail and institutional investors.
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As 2024 comes to an end, Dogecoin is more likely to set new highs in early 2025. By then, changes in the global economic and political landscape, including the inauguration of Donald Trump as president, could create optimism for Dogecoin. Cryptocurrency sector.
Featured image from Bankrate, chart from TradingView
