Bitcoin and Dogecoin have captured significant attention in the current crypto cycle, with Bitcoin’s price gains often spilling over into Dogecoin’s value. At one point, their price correlation stood impressively high at 0.97.
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Interestingly, recent market dynamics have propelled Bitcoin’s price beyond the $100,000 mark once again, with it reaching as high as $102,700 in the last 24 hours. Meanwhile, Dogecoin hasn’t mirrored this upward trend, dipping below the support at $0.4 in the same period.
Dogecoin’s Recent Performance Amid Bitcoin’s Surge
Bitcoin has once more crossed the psychological barrier of $100,000, reflecting a marked 7.5% rise from a low of $94,900 on December 10. This rebound follows a previous setback at the $100,000 threshold, which triggered sell-offs across various cryptocurrencies.
While Bitcoin demonstrates its strong footing, Dogecoin faces hurdles in maintaining its upward drive. It did manage to climb to $0.48 on December 8, a level unseen since 2021. However, a closer look at Dogecoin’s price activity indicates a persistent battle with the $0.48 resistance, which is now perceived as the key level to surpass in this market cycle.
Currently, Dogecoin is trading at $0.395, reflecting a 17% decline from its 2024 peak of $0.48. Over the past week, Dogecoin has dropped by about 13%, making it the poorest performer among the top 10 cryptocurrencies by market capitalization.
Is A New Dogecoin All-Time High Still Possible This Cycle?
Market experts offer varied opinions on whether Dogecoin can achieve a new all-time high in the present cycle. Dogecoin previously hit its zenith at $0.73 during the May 2021 crypto bull run. While reaching above this level remains plausible, it seems attainable only if Dogecoin aligns more closely with Bitcoin’s rally.
There’s an argument that Dogecoin could soon regain its upward momentum. Traditionally, Dogecoin’s price spikes have been driven by sudden bursts of activity from retail investors, often spurred by social media rumors about things like payment implementations on platforms like X. To surpass its 2021 high, Dogecoin would need a surge in enthusiasm akin to previous spikes, coupled with substantial trading volume and renewed interest from both individual and institutional investors.
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By the close of 2024, a more likely scenario for Dogecoin to reach new highs could emerge in early 2025. Shifts in the global economic and political environment, such as Donald Trump taking office, could fuel optimism within the cryptocurrency sphere.
Featured image sourced from Bankrate, chart from TradingView.
