A prominent cryptocurrency analyst has sparked a thought-provoking debate on social media platform
While most major cryptocurrencies have risen to all-time highs on the upside of 2021, XRP struggled to break through the past its previous peak. Now, cryptocurrency analyst Tony “The Bull” Severino has made a comparison with Dogecoin Show similar price actionNoting the question whether Dogecoin “withdraws XRP in this cycle?”
Drawing parallels between the price of XRP and the price of Dogecoin
according to Technical analysis for XRP and Dogecoin price charts shared by Tony on social media platform Despite being one of the top cryptocurrencies by market cap, XRP has faced unique challenges that slowed its rise alongside Bitcoin and Ethereum during the recent bull run.
Although XRP saw a notable price increase and peaked at $1.95, it encountered resistance at the 0.786 Fibonacci extension of the 2020 low. As such, XRP price failed to break through its 2018 all-time high at $3.84 ahead of a bear market in 2022, much to the disappointment of many bullish supporters. Since then, XRP has largely traded between $0.7 and $0.5 without any sustained upward momentum needed to reclaim its previous highs.
The analyst also highlighted Dogecoin’s price action using the monthly candlestick chart for the DOGE/USD pair. He noted that Dogecoin price was recently rejected at the 0.5 Fibonacci extension of the 2022 low, a pattern that closely mirrors the performance of XRP, as the price was similarly repelled at the 0.5 Fibonacci extension of the 2020 low.
What does this mean for DOGE?
Repeating market cycles are no stranger to the cryptocurrency community, and there is still a possibility that a market leader like Dogecoin will follow in XRP’s footsteps in 2021. If this XRP pattern continues, it will sustain the price of Dogecoin. Suppressed in the current Taurus cycle. Specifically, Dogecoin price may face significant resistance at the 0.786 Fibonacci extension level, located near $0.42.
Tony Severino’s analysis comparing the two cryptocurrencies has sparked discussions among many participants in the cryptocurrency space. One of the participants, @WLitecoin, Comment it This scenario is very plausible, considering that it is rare for a cryptocurrency that performed exceptionally well in one cycle to repeat that success in the next cycle. They argue that several large buyers from the 2021 cycle are likely to act as resistance during the current cycle and create downward pressure on Dogecoin price.
On the other hand, another commentator (@JVNTrade) He believes The two cryptocurrencies are completely different. According to them, Dogecoin He has ties to Donald Trump and Elon Muskand therefore the price movement You will play differently of XRP.
At the time of writing, DOGE is trading at $0.135 and is up 10.82% in the last 24 hours. XRP is trading at $0.55 and is down 0.73% in the past 24 hours.
Featured image created with Dall.E, chart from Tradingview.com