- Dogecoin is the altcoin with the highest correlation to Bitcoin over the last 30 days.
- DOGE found its low around its 2023 highs, but it is possible to reach 2021 highs.
Dogecoin (DOGE) maintained a significantly high correlation with Bitcoin (BTC) at 0.92, indicating that its price movements often mirrored those of BTC, as highlighted by IntoTheBlock’s correlation matrix.
The relationship suggests that as the price of Bitcoin rises, DOGE has generally followed suit, something traders do not want to see continue if BTC becomes bearish.
Cryptollica Analyst note During a recent issuance, Dogecoin was particularly effective in attracting new investors to the cryptocurrency market.
Source: In the block
This appeal was supported by on-chain data, which showed growing interest from retail investors.
Despite varying opinions on Dogecoin’s influence, it has undeniably played a positive role in the broader adoption of crypto, likely contributing to its upward movement as Bitcoin rallied.
Dogecoin Price Prediction
DOGE/USDT on the weekly chart revealed that it found its low around its 2023 highs, signaling the end of its previous bull run.
The positioning suggests a significant recovery, as DOGE has shown signs of returning towards its peak levels of 2021.
With the recent uptrend, Dogecoin has mirrored a similar trend seen during early bull runs, indicating that it may well kick off a new memecoin supercycle as we head towards 2025.
Source: Commercial View
The current price movement, positioned above significant Fibonacci retracement levels from previous highs, implies that Dogecoin could make considerable gains.
If this momentum continues, Dogecoin could potentially revisit its all-time highs, leading the memecoin rally.
Impact of the BTC.D peak on DOGE
Further analyzing Dogecoin’s next step in the context of its correlation with Bitcoin and broader crypto market dynamics, DOGE has shown resilience in establishing a base around its 2023 highs.
Despite Bitcoin’s dominance reaching 60% and subsequent fluctuations following Federal Reserve rate cuts, Dogecoin has not mirrored Bitcoin’s new highs in 2024.
However, historical patterns suggest an upcoming memecoin season in 2025, potentially propelling Dogecoin to new highs.
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After recent rate cuts, Bitcoin’s dominance briefly declined, which historically benefits altcoin-Bitcoin pairs. If this trend continues, Dogecoin could rebound as the market adapts to these macroeconomic changes.
As the year ends and quantitative tightening potentially ends, DOGE could capitalize on market liquidity and investor sentiment. It could robustly revisit its 2021 highs and participate in the next memecoin cycle.