Despite its notable gains throughout this year, the price of Dogecoin has still to overcome its all-time high in 2021, but analysts remain bullish. Interestingly, recent analysis by crypto analysts has compared Dogecoin price action to that of the XRP price rally, and the general consensus is that both cryptocurrencies will reach new all-time highs in the coming months. A notable observation by crypto analyst Professor Astrones has added intrigue to this discussion as he links XRP market movements to a rally in the price of Dogecoin.
Dogecoin Price Action Mirrors XRP Rally Dynamics
Professor Astrones, a pseudonymous crypto analyst, shared his perspective on social media platform According to the DOGEUSDT 4-hour chart that accompanied your analysis, Dogecoin’s current price movement is defined by a tightening range formed by a descending trend line and an ascending trend line. Interestingly, this chart structure resembles that of a bullish pennant flag, which often means that a bullish breakout is approaching.
According to him, Dogecoin price is still on track to hit a closer target of $1 and longer-term targets of $3 and $5 by 2025. These are all bullish targets, and reaching even $1 would require a breakout by above the current level. temporary high of $0.7316. Interestingly, his Dogecoin price outlook is also based on a liquidity projection rotation in the crypto market.
Specifically, he predicted a scenario where the capital that has fueled XRP’s price rally will eventually flow into Dogecoin. “$XRP money will flow into $DOGE” the analyst said.
What this basically means is that as XRP investors start to make profits, their attention may turn towards Dogecoin, which, like XRP, is one of the most popular cryptocurrencies among retail investors.
Interestingly, this prospect of money rotation between XRP and Dogecoin is supported by other crypto analysts. One of those voices is @CryptoGodJohn, who expressed a similar opinion on the social media platform
Parallels between Dogecoin and XRP charts
Jacob Canfield, another popular crypto analyst, shared his thoughts on the price similarities between Dogecoin and XRP, highlighting the classic trading structure of both assets. He noted that Dogecoin price has been forming higher lows while successfully converting previous resistance levels into support. very similar to XRP on the lower time frames.
At the time of writing, Dogecoin is trading at $0.441 and is up 5% in the last 24 hours. XRP, on the other hand, is currently trading at 2.37, having fallen by approximately 10% in the last 24 hours. It remains to be seen if there will be a liquidity rotation between XRP and Dogecoin in the current bull cycle.
Featured image created with Dall.E, chart from Tradingview.com
