Despite its notable gains throughout this year, the price of Dogecoin has still to break through its all-time high in 2021, but analysts continue to remain optimistic. Interestingly, recent reviews from crypto analysts have compared the price of Dogecoin action to that of rising XRP prices, with the general consensus being for new all-time highs for both cryptocurrencies in the coming months. A notable observation from crypto analyst Professor Astrones added intrigue to this discussion, as he links XRP market movements to a rise in the price of Dogecoin.
Dogecoin price action reflects XRP’s rally momentum
Professor Astrones, a pseudonymous crypto analyst, shared his views on social media platform According to the DOGEUSDT 4-hour chart that accompanied his analysis, Dogecoin’s current price movement is defined by a tightening range formed by a descending trendline and an ascending trendline. Interestingly, this chart structure resembles that of a bull pennant flag, which often means a bullish breakout is near.
According to him, Dogecoin price is still on track to reach a target closer to $1 and long-term targets of $3 and $5 by 2025. These are all bullish targets, and even reaching $1 would require a breakout above the current level. a time high of $0.7316. Interestingly, its Dogecoin price outlook is also based on a liquidity turnover projection in the crypto market.
Specifically, he predicted a scenario in which the capital that fueled the XRP price rise would eventually flow into Dogecoin. “$XRP money will be paid into $DOGE” the analyst said.
This essentially means that as XRP investors begin to make profits, their attention may turn to Dogecoin, which, like XRP, is one of the most popular cryptocurrencies among individual investors.
Interestingly, this prospect of currency rotation between XRP and Dogecoin is supported by other crypto analysts. One of those voices is @CryptoGodJohn, who expressed a similar view on social media platform
Parallels between Dogecoin and XRP charts
Jacob Canfield, another popular crypto analyst, shared his thoughts on the price similarities between Dogecoin and XRP, highlighting the classic trading structure of both assets. He observed that Dogecoin price made higher lows while successfully turning previous resistance levels into support, much like XRP on lower timeframes.
At the time of writing, Dogecoin is trading at $0.441 and is up 5% in the last 24 hours. XRP, on the other hand, is currently trading at 2.37, having fallen by around 10% in the last 24 hours. It remains to be seen whether there will be a liquidity rotation between XRP and Dogecoin in the current bull cycle.
Featured image created with Dall.E, chart from Tradingview.com