This month has seen Dogecoin’s price thrive, reaching $0.4795, its highest point since May 2021, as the wider cryptocurrency market experiences an upswing.
On November 28, Dogecoin (DOGE) was trading at $0.40, reflecting a remarkable 365% increase from its low in September.
This upward trend mirrors Bitcoin’s (BTC) approach towards $100,000, where it sets a new all-time high. Historically, both Dogecoin and Bitcoin have shown parallel price movements. According to data from IntoTheBlock, the correlation coefficient between the two coins stands at 0.98, suggesting they often move together.
Consequently, there is a strong possibility that Dogecoin will maintain its bullish trend if Bitcoin surpasses $100,000. In a recent analysis of Bitcoin, we observed that technical indicators suggest an upward movement to $122,000, based on the coin’s cup and handle pattern visible on the weekly chart.
This pattern, as the name implies, features a rounded bottom followed by a pullback or consolidation phase. The ‘handle’ of Bitcoin’s cup lasted from March until earlier this month, culminating in a bullish breakout at $99,700.
Additionally, Bitcoin benefits from strong seasonal trends, typically experiencing price increases in November and December. Moreover, there are suggestions that Trump may appoint Paul Atkins, a well-known figure in the cryptocurrency sector, as the next head of the Securities and Exchange Commission.
Spot Bitcoin ETFs have witnessed a surge in interest, with total assets surpassing $101 billion, thus instilling greater market confidence.
Continued Rally for Dogecoin Price
If Bitcoin reaches the projected $122,000, Dogecoin’s price seems set for additional gains.
On the weekly chart, Dogecoin has shown parabolic growth, surpassing a crucial resistance level at $0.2278, its peak from March 2023, and negating a previous double-top pattern.
The cryptocurrency has established a golden cross pattern as well, with the 50-week and 200-week moving averages intersecting, and has moved above the 50% Fibonacci Retracement level at $0.03715.
Currently, Dogecoin is forming a bullish flag or pennant pattern, which typically signals a forthcoming strong breakout. Should this happen, the next target could be $0.7400, its all-time high, representing an 85% rise from the current levels. However, a decline below $0.2278 would invalidate this optimistic scenario.
