CoinWorld reports:
Dogecoin is the altcoin with the highest correlation to Bitcoin over the past 30 days. DOGE bottomed near its 2023 high but has the potential to reach its 2021 peak.
Dogecoin [DOGE] and Bitcoin [BTC] have price movements that typically mirror BTC, as highlighted by IntoTheBlock’s correlation matrix. This relationship suggests that as Bitcoin’s price rises, DOGE often follows suit, a scenario traders hope will continue if Bitcoin turns bearish.
Cryptollica analysts note in a recent broadcast that Dogecoin has been very effective in attracting new investors to the cryptocurrency market. This appeal is supported by on-chain data showing growing interest from retail investors. Despite differing opinions on Dogecoin’s impact, it has undeniably played a positive role in broader cryptocurrency adoption, which could help during Bitcoin’s upward movements.
Dogecoin Price Prediction
The DOGE/USDT weekly timeframe chart shows it bottomed near its 2023 high, marking the end of its previous bull run. This positioning indicates significant recovery as DOGE shows signs of reverting to 2021 peak levels. With the recent uptrend, Dogecoin reflects similar patterns observed in early bull markets, suggesting it could be starting a new meme coin supercycle as we head into 2025.
The current price action is above the Fibonacci retracement level of previous highs, indicating Dogecoin could see substantial gains. If this momentum continues, Dogecoin could hit new all-time highs, leading a meme coin rally.
BTC’s Influence. DOGE Peaks
Further analysis of Dogecoin’s correlation with Bitcoin and the broader crypto market dynamics shows DOGE demonstrated resilience by establishing a base near its 2023 high. Despite Bitcoin’s dominance reaching 60% and experiencing volatility after the Fed rate cut, Dogecoin has not mirrored Bitcoin’s new highs in 2024. However, historical patterns suggest the upcoming 2025 meme coin season could propel Dogecoin to new heights.
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Following the recent rate cut, Bitcoin’s dominance briefly declined, historically benefiting altcoin pairs against Bitcoin. If this pattern continues, Dogecoin could rise as the market adjusts to these macroeconomic changes. With the year’s end and potential end of quantitative tightening, DOGE could capitalize on market liquidity and investor sentiment, potentially making a strong return to its 2021 highs and participating in the next meme coin cycle.