Dogecoin price action is currently confined between two important technical levels, the Overall Golden Pocket and the Overall 0.5 Fibonacci Retracement Level. This was the observation Most notably, cryptocurrency analyst Kevin (@Kev_Capital_TA) on social media platform
The impact of Bitcoin on Dogecoin market movement
As the world’s largest cryptocurrency, public sentiment towards other cryptocurrencies is always mostly linked to sentiment towards Bitcoin. Periods of high inflows into Bitcoin are always highlighted by inflows into other cryptocurrencies, and vice versa, with the exception of altcoin seasons.
as Biggest coin memeDogecoin is one of the biggest sentiment reversals in Bitcoin. According to data from IntoTheBlock, Dogecoin currently has a price correlation of 0.77 with Bitcoin from the maximum of the scale of 1. Interestingly, this correlation sometimes remains in the range of 0.9, especially during rallies. In his comment, cryptocurrency analyst Kevin noted that Dogecoin’s current price path is not self-determined but is instead strongly influenced by Bitcoin’s performance.
Currently, the recent market dynamics have seen the price of Dogecoin Stuck between The total golden sine and the total Fibonacci levels are 0.5. In technical analysis, a golden pocket is an area located between the 61.8% and 65% retracement levels. These levels, commonly used in technical analysis, act as support and resistance areas, and breaking them in either direction could result in a notable breakout.
Patience as a strategy
Dogecoin price is suffering from a lack of momentum and is struggling to replicate the notable highs seen in October and November. During that period, Dogecoin captured the market’s attention with an impressive upward movement of over 400%, driven largely by the enthusiasm before and after the US presidential election.
However, those sentiments are bullish It seems to have diminished, Leaving the meme coin now roaming around the $0.4 mark. Furthermore, Bitcoin’s inability to sustain a significant breakout above the $100,000 price level has cast a shadow over altcoins like Dogecoin, whose performance is often tied to Bitcoin’s market behavior.
Despite the current price stagnation, cryptocurrency analysts like Kevin remain bullish on the meme coin. Signals across social media remain bullish, and technical analysis suggests that the price of Dogecoin He still has plenty of room to run.
“I don’t see anything that tells me the cycle is over; Therefore, it should head higher soon enough regardless of the short-term noise Comment.
At the time of writing, Dogecoin is trading at $0.404 and is down about 3.5% in the past 24 hours. On the other hand, Bitcoin is trading at $99,800 and has fallen by 0.8% in 24 hours.
Featured image created with Dall.E, chart from Tradingview.com