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Bitcoin and Dogecoin are two of the most watched cryptocurrencies this cycle, with increases in the price of Bitcoin mostly flowing through to the price of Dogecoin. At one point, the price correlation between the Dogecoin price and the Bitcoin price was at 0.97.
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Interestingly, the recent market movements have seen the price of Bitcoin rise Back above the $100,000 price level Once again, with the leading cryptocurrency reaching a high of 102,700 in the past 24 hours. However, this has not yet translated into a corresponding increase in the price of Dogecoin, along with the meme coin Break below support At $0.4 in the same time frame.
Dogecoin’s recent performance amid the Bitcoin boom
Bitcoin has once again crossed the psychological threshold of $100,000 after a 7.5% price increase since the low of $94,900 on December 10. It is worth noting that this upward movement is the latest rebound for Bitcoin after the rejection at the $100,000 price level that… It sent shock waves of eliminations Among other 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 has not touched since 2021. However, a detailed examination of the memecoin’s price action reveals a recurring struggle 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 about 17% since reaching its 2024 high of $0.48. Currently, Dogecoin is down about 13% in the past seven days, making it the worst performer among the top 10 cryptocurrencies by market cap in this time frame.
Is it still possible to achieve a new high for Dogecoin in this cycle?
Their market analysts Various predictions were made Regarding the possibility and timelines for Dogecoin price to achieve a new all-time high in the current cycle. ogecoin last reached its peak price of $0.73 during the cryptocurrency’s bull run in May 2021. The possibility of a breakout above this level in this cycle remains, but the path forward looks difficult, especially if Dogecoin’s price continues to decouple from Bitcoin’s rally.
However, you can say so General consensus Is Dogecoin likely to resume its upward trend anytime soon? Historically, Dogecoin price spikes have been due to a sudden spike in retail investor activity, often due to rumors on social media like payments on X and things like that. For Dogecoin to surpass its 2021 high, a similar wave of enthusiasm will need to emerge with significant trading volume and renewed interest from retail and institutional investors.
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As 2024 draws to a close, a more plausible scenario may emerge for Dogecoin to reach new highs in early 2025. By then, a change in the global economic and political landscape, including the inauguration of Donald Trump as president, could create optimism in the world. Crypto sector.
Featured image from Bankrate, chart from TradingView