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Bitcoin and Dogecoin are two of the most watched cryptocurrencies in this cycle, with increases in the price of Bitcoin mostly feeding into that of Dogecoin. At one point, the correlation between the price of Dogecoin and that of Bitcoin was as high as 0.97.
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Interestingly, recent market movements have seen the price of Bitcoin move back above the $100,000 price level once again, with the leading cryptocurrency reaching 102,700 in the last 24 hours. However, this has not yet translated into a corresponding increase in the price of Dogecoin, with the meme coin break below support to $0.4 in the same time frame.
Dogecoin’s recent performance amid Bitcoin’s surge
Bitcoin has once again surpassed the psychological threshold of $100,000, following a 7.5% price increase from the low of $94,900 on December 10. Notably, this upward movement is the latest recovery for Bitcoin after a rejection at the $100,000 price level which sent a shockwave of liquidations among other cryptocurrencies.
But while Bitcoin has shown resilience, Dogecoin has faced significant challenges in sustaining its upward momentum. Dogecoin managed to reach $0.48 on December 8, a level it hasn’t touched since 2021. However, a detailed examination of the meme coin’s price action reveals a recurring struggle with the $0.48 resistance level , which now appears to be the resistance level point 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 its 2024 high of $0.48. As it stands, Dogecoin is down around 13% over the past seven days, making it the worst performer among the top 10 cryptocurrencies by market capitalization over this time frame.
Is a new Dogecoin all-time high still possible in this cycle?
Market analysts did provided different predictions regarding the possibility and timing of the Dogecoin price reaching a new all-time high in the current cycle. ogecoin last reached its high price of $0.73 during the May 2021 cryptocurrency bull run. The prospect of surpassing this level in this cycle is still there, but the path forward appears challenging, especially if Dogecoin’s price should continue to break away from Bitcoin’s rally.
However, you could argue that general consensus is that Dogecoin will soon resume its bullish trend. Historically, Dogecoin price surges have been due to sudden spikes in retail investor activity, often due to social media rumors like payments on X and things like that. For Dogecoin to surpass its 2021 high, a similar wave of enthusiasm would need to emerge with significant trading volume and renewed interest from both retail and institutional investors.
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As 2024 comes to a close, a more plausible scenario for Dogecoin to hit new highs could emerge in early 2025. At that point, a change in the global economic and political landscape, including the inauguration of Donald Trump as president, could create optimism in the crypto sector.
Featured image of Bankrate, chart by TradingView