Dogecoin Fails To Follow Bitcoin’s Recent Uptick: Is A New ATH Still Feasible This Cycle?

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As a seasoned crypto investor with a few battle scars to show for it, I must admit that the recent performance of Dogecoin amid Bitcoin‘s surge has left me somewhat perplexed. Having ridden the wave of the 2021 bull run and witnessed firsthand the meme coin’s dramatic price swings, I’ve grown accustomed to its volatility. However, this time around, the correlation between Bitcoin and Dogecoin seems to have taken a strange turn.

During this current period, Bitcoin and Dogecoin are the two digital currencies receiving the most attention. Typically, surges in Bitcoin’s value tend to influence Dogecoin’s as well, with a strong relationship between their prices (a correlation of 0.97 at one point).

Intriguingly, within the current market scenario, Bitcoin’s value has surged back above $100,000, peaking at 102,700 within the last day. Conversely, this surge hasn’t seem to positively impact Dogecoin’s price yet, as it dipped below its $0.4 support level during the same period.

Dogecoin’s Recent Performance Amid Bitcoin’s Surge

Bitcoin has again breached the significant $100,000 mark, following a 7.5% price rise since it dipped to $94,900 on December 10th. It’s worth mentioning that this latest surge in price is part of Bitcoin’s recovery, after an earlier rejection at the $100,000 value caused widespread sell-offs in other cryptocurrencies.

Even though Bitcoin has demonstrated strength, Dogecoin has encountered significant hurdles in maintaining its advancement. On December 8th, Dogecoin managed to surge to $0.48, a value it hadn’t reached since the previous year. However, a close look at Dogecoin’s price movements suggests a persistent problem with the $0.48 resistance level, which now appears to be an obstacle in breaking this ongoing market pattern.

At the moment of writing, Dogecoin is being exchanged for approximately $0.395, which represents a decline of around 17% from its 2024 peak at $0.48. Over the past week, Dogecoin has dropped by roughly 13%, making it the poorest performer among the top ten cryptocurrencies with the highest market cap within this timeframe.

Is A New Dogecoin All-Time High Still Possible This Cycle?

Analysts have offered diverse views on whether Dogecoin’s price will set a fresh record high within the current market trend, given that it previously peaked at $0.73 in May 2021. However, surpassing this level again in this cycle could be difficult, particularly if Dogecoin’s price continues to diverge from Bitcoin’s upward momentum.

It’s possible that some people might think the overall opinion is for Dogecoin to start going up again soon. In the past, increases in Dogecoin’s price have been caused by sudden increases in activity among individual investors, often triggered by rumors on social media or news about partnerships like payments on platforms X and similar. For Dogecoin to reach its 2021 peak once more, a fresh wave of excitement would need to occur, accompanied by high trading volumes and renewed attention from both individual and institutional investors.

As we approach the end of 2024, it seems increasingly likely that Dogecoin may hit new peaks in early 2025. This optimistic outlook is largely due to shifts in the global economic and political landscape. For instance, the potential inauguration of Donald Trump as president could foster a sense of optimism within the crypto sector.

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2024-12-15 21:04