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Bitcoin and Dogecoin are two of the most watched cryptocurrencies this cycle, with increases in Bitcoin’s price primarily flowing into Dogecoin’s. At one point, the price correlation between the price of Dogecoin and Bitcoin was 0.97.
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Interestingly, recent market movements have caused the price of Bitcoin returning above the $100,000 price level Again, the leading cryptocurrency reached 102,700 in the last 24 hours. However, this has yet to translate into a corresponding increase in the price of Dogecoin, with the meme coin breaking below support to $0.4 in the same time period.
Dogecoin’s recent performance amid Bitcoin surge
Bitcoin has once again surpassed the psychological threshold of $100,000 after a 7.5% price increase from a low of $94,900 on December 10. Notably, this upward move is Bitcoin’s latest recovery after a rejection at the $100,000 price level that sent shockwaves of liquidations 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, which is a level it had not touched since 2021. However, a close examination of the meme coin’s price action reveals a recurring struggle with the 0 resistance level. $.48, which now appears to be the resistance. level to break this market cycle.
At the time of writing, Dogecoin is currently trading at $0.395, meaning it has lost around 17% since reaching this 2024 high of $0.48. As things stand, Dogecoin is down about 13% over the past seven days, making it the worst performer among the top 10 cryptocurrencies by market capitalization in this time period.
Is a new Dogecoin all-time high still possible this cycle?
Market analysts have provided different predictions regarding the possibility and timing of Dogecoin price to reach a new all-time high in the current cycle. ogecoin last reached its peak price of $0.73 during the May 2021 cryptocurrency bull run. The prospect of breaking this level in this cycle is still there, but the path forward looks challenging, especially if the price of Dogecoin will continue to separate itself from Bitcoin’s rally.
However, it could be argued that the general consensus It is likely that Dogecoin will resume its upward trend in the short term. Historically, Dogecoin price increases have been due to sudden spikes in retail investor activity, often due to social media rumors like payments in X and things of that nature. For Dogecoin to surpass its 2021 high, a similar wave of enthusiasm would 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 for Dogecoin to reach new highs could emerge in early 2025. By then, a change in the global economic and political landscape, including the inauguration of Donald Trump as president, could generate optimism in the crypto sector.
Featured image from Bankrate, TradingView chart
