Emily Walker
As institutional investors increasingly favor Bitcoin, Dogecoin’s value is gaining traction among retail investors. Notably, Dogecoin’s price movements have closely mirrored those of Bitcoin. Recently, Bitcoin’s surpass of $100,000 has also led to a surge in Dogecoin, which has broken through the resistance of an ascending triangle established since November 23.
Key Breakout from Ascending Triangle for Dogecoin
Crypto analyst Rekt Capital provided insights on social media, showing that Dogecoin’s price has recently surged past the upper trendline of an ascending triangle pattern highlighted on a daily candlestick chart.
The ascending triangle pattern typically suggests a continuation of upward price movement. The recent breakout for Dogecoin indicates bullish momentum, but it is essential for the coin to maintain this level as support. Currently, Dogecoin is testing the upper trendline of this pattern. If this retest is successful, it could pave the way for a significant upward trend in the upcoming weeks and months. Rekt Capital estimates a target price of $0.569 if this bullish trend continues.
How Bitcoin Affects Dogecoin’s Price Dynamics
Historically, Dogecoin’s price has shown a strong correlation with Bitcoin, especially during bullish market periods. As reported by IntoTheBlock, Dogecoin has a price correlation of 0.96 with Bitcoin, indicating a near-perfect link. In contrast, Ethereum, the second-largest cryptocurrency, shows a correlation of 0.75.
Bitcoin’s recent surge above $100,000 has revitalized market sentiment, driving investments across various cryptocurrencies, including Dogecoin. Following Bitcoin’s breakout, Dogecoin experienced a brief rally, reaching $0.4582. Analysts believe that as Bitcoin consolidates its gains, it will create a conducive environment for Dogecoin and other alternative coins to rise further.
Nonetheless, the interdependence of these assets suggests that Dogecoin’s potential rise to $0.569 is contingent upon Bitcoin’s ability to maintain its upward trend. If Bitcoin experiences a downturn, Dogecoin may also struggle to uphold its bullish direction.
Currently, Dogecoin is priced at $0.4379, with bulls trying to convert the triangle’s resistance trendline into support. However, there is a risk of a downward move, especially as Bitcoin has recently dipped below $100,000 again.