Bitrabo Editorial
An upcoming price correction in Bitcoin might trigger a significant downturn in Dogecoin’s value, according to recent insights.
Intertwined Fate of Dogecoin and Bitcoin
If Bitcoin does indeed undergo the projected substantial price correction as predicted by crypto analyst Ali Martinez, Dogecoin is likely to follow suit. Martinez highlighted a sell signal on the TD Sequential indicator in Bitcoin’s 2-month chart, implying an impending price correction.
If Bitcoin fails to maintain the $51,000 support level, it could plummet to $40,600. This potential decline in Bitcoin’s value is anticipated to lead to a price crash for Dogecoin due to the strong positive price correlation between the two assets.
Bitcoin’s movements significantly influence the overall crypto market, resulting in downward pressure on Dogecoin. Notably, Dogecoin experienced significant price decreases after Bitcoin’s dip below $50,000 on August 5.
Moreover, historical trends indicate that September typically sees Bitcoin recording losses, heightening the likelihood of a substantial price crash this month as suggested by various analysts including Julio Moreno.
September has historically been a challenging month for Dogecoin as well, with data indicating losses in most years except for 2021.
Analysis of DOGE’s Price using Onchain Metrics
Current onchain metrics present a mixed outlook for Dogecoin’s price. While there is an increase in large transactions hinting at significant accumulation by crypto whales, the bid-ask volume imbalance portrays a positive scenario for Dogecoin.
Conversely, the declining number of addresses holding DOGE, coupled with the meme coin’s bearish performance below the critical $0.10 support level, paints a bearish picture. Adoption levels for DOGE have also shown stagnation, indicating waning interest among new investors.
As of the latest data from CoinMarketCap, Dogecoin is trading around $0.09, marking a slight increase of over 1% in the past 24 hours.