Bitrabo Editorial
A noteworthy cryptocurrency expert has ignited an engaging discussion on the platform X, proposing that Dogecoin’s price trajectory might reflect that of XRP from the last bull market.
During the significant market upturn in 2021, many leading cryptocurrencies experienced unprecedented highs, while XRP struggled to surpass its previous peak. Tony “The Bull” Severino, a prominent analyst, has suggested a potential similarity with Dogecoin’s price movements, posing the question: could Dogecoin “pull an XRP” this cycle?
Comparing XRP’s and Dogecoin’s Price Behaviors
Through his technical analysis shared on X, Severino illustrated how Dogecoin’s price fluctuations in recent years closely resemble those of XRP in prior years. Despite being among the prominent cryptocurrencies, XRP encountered specific hurdles that hindered its advancement alongside Bitcoin and Ethereum during the previous bull market.
XRP did experience a significant rise to $1.95 but faced barriers at the 0.786 Fibonacci extension from its 2020 low. Consequently, it failed to exceed its previous high of $3.84 from 2018 before entering the bear market in 2022, leaving many optimistic investors disappointed. Since then, XRP has remained trading between $0.5 and $0.7 without the upward momentum necessary to reclaim its earlier values.
Severino further examined Dogecoin’s price behavior using a monthly candlestick chart for DOGE/USD. He indicated that Dogecoin was recently rejected at the 0.5 Fibonacci extension level from its 2022 low, a pattern strikingly similar to XRP’s previous price behavior, where it faced rejection at the same Fibonacci level from its 2020 low.
Implications for Dogecoin’s Future
The cryptocurrency community is well-acquainted with the cyclical nature of markets, leading to speculation about a potential trajectory for Dogecoin akin to XRP’s in 2021. Should the patterns observed with XRP unfold similarly for Dogecoin, its price may find itself constrained during this bull cycle, encountering considerable resistance around the 0.786 Fibonacci extension level near $0.42.
Severino’s comparative analysis has led to vibrant discussions among crypto enthusiasts. One user, @WLitecoin, highlighted that this scenario is very likely, noting that it’s uncommon for a cryptocurrency that performs exceptionally well in one cycle to replicate that success in the next. They argue that many buyers from the 2021 market may create resistance in the current cycle, putting downward pressure on Dogecoin’s price.
Conversely, another user (@JVNTrade) contends that the two cryptocurrencies are fundamentally different. They point out Dogecoin’s connections to influential figures like Donald Trump and Elon Musk, suggesting that its price dynamics diverge from those of XRP.
Currently, DOGE is priced at $0.135, reflecting a 10.82% increase over the last 24 hours, while XRP stands at $0.55, having seen a slight decrease of 0.73% in the same timeframe.