Emily Walker
The price of Dogecoin is currently fluctuating between two significant technical levels: the macro golden pocket and the macro 0.5 Fibonacci retracement level. This situation was noted by crypto analyst Kevin on the platform X. According to him, Dogecoin’s short-term prospects are largely influenced by Bitcoin’s movements rather than its own market dynamics.
Impact of Bitcoin on Dogecoin’s Performance
As the leading cryptocurrency, Bitcoin heavily influences the overall sentiment in the cryptocurrency market. When Bitcoin experiences large inflows, other cryptocurrencies usually see similar activity, except during altcoin seasons.
Being the foremost meme coin, Dogecoin reflects Bitcoin’s sentiment. Data from IntoTheBlock indicates that Dogecoin has a 0.77 price correlation with Bitcoin, which can surge to 0.9 during bullish trends. Kevin emphasized that Dogecoin’s price path is primarily driven by Bitcoin’s performance.
Currently, Dogecoin’s price is trapped between the golden pocket and the 0.5 Fibonacci levels, which are known support and resistance zones in technical analysis. A break beyond either of these could trigger a significant price movement.
Adopting a Patient Approach
Dogecoin’s current price has been lacking momentum and is far from replicating the impressive gains seen in October and November, where it surged over 400% in response to pre and post-US presidential election excitement.
However, that bullish trend seems to have faded, with Dogecoin hovering around the $0.4 mark. Additionally, Bitcoin’s failure to maintain a price above $100,000 has negatively impacted altcoins like Dogecoin, which typically follow Bitcoin’s trajectory.
Despite these challenges, analysts like Kevin hold a positive outlook for Dogecoin. Social media discussions remain optimistic, and technical analyses indicate that there is potential for Dogecoin’s price to rise further.
Kevin stated, “I see nothing suggesting the cycle is over; hence, growth should occur soon, despite short-term fluctuations.”
As of the latest update, Dogecoin is priced at $0.404, marking a 3.5% decline in the last 24 hours. Meanwhile, Bitcoin is trading at $99,800, down by 0.8% over the same period.