Recently highlighted by IntoTheBlock’s correlation matrix, Dogecoin [DOGE] has maintained a remarkable correlation of 0.92 with Bitcoin [BTC], suggesting that price fluctuations in DOGE often closely mimic those in BTC.
Observers note that as Bitcoin’s price rises, Dogecoin typically follows suit, a trend that traders are closely monitoring especially in case BTC undergoes a bearish trend.
Cryptocurrency analyst Cryptollica recently pointed out that Dogecoin has been effective in attracting new investors to the crypto market.
This attraction is further supported by on-chain data indicating a growing interest from retail investors.
Despite differing opinions on Dogecoin’s impact, it has undeniably played a positive role in promoting broader crypto adoption, potentially contributing to its bullish trend during Bitcoin’s rallies.
Predicted Future of Dogecoin Price
An analysis of the DOGE/USDT chart on a weekly time frame indicates that it hit a bottom around its 2023 highs, signaling the conclusion of its previous bull run.
The current positioning hints at a substantial recovery, with Dogecoin showing signs of retracing towards the peak levels it reached in 2021.
Recent upward movements in Dogecoin reflect patterns reminiscent of early bull runs, potentially signaling the initiation of a new memecoin supercycle as we approach 2025.
The current price movement, positioned above key Fibonacci retracement levels from previous highs, hints at the possibility of significant gains for Dogecoin.
If this positive momentum continues, Dogecoin could aim for revisiting its all-time highs, spearheading the memecoin rally.
Effect of BTC.D Peaking on Dogecoin
Examining Dogecoin’s future movements in light of its correlation with Bitcoin and broader crypto market trends, DOGE has displayed resilience by establishing a base around its 2023 highs.
Despite Bitcoin’s dominance hitting 60% and experiencing fluctuations following the Federal Reserve’s rate adjustments, Dogecoin did not mirror Bitcoin’s new highs in 2024.
Historical patterns point to a potential memecoin season in 2025, possibly pushing Dogecoin to reach new heights.
Following recent rate changes, Bitcoin’s dominance briefly declined, historically benefiting altcoin-to-Bitcoin pairs. If this pattern holds, Dogecoin could witness a rally as the market responds to these macroeconomic shifts.
As the year wraps up and potential quantitative tightening approaches its end, Dogecoin might capitalize on market liquidity and investor sentiment, potentially surging back to its 2021 highs and participating actively in the upcoming memecoin cycle.