Dogecoin Price Follows Bitcoin Trajectory: DOGE Can Hit $0.569 If This Happens

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As a seasoned analyst with over two decades of experience in financial markets, I have seen my fair share of market trends and patterns. In the ever-evolving world of cryptocurrencies, one cannot ignore the significant impact institutional investments and retail sentiment have on the price action of digital assets like Bitcoin and Dogecoin.

As an analyst, I’ve noticed a significant surge in institutional investment towards Bitcoin, which has sparked a shift in the market. Specifically, Dogecoin is gaining traction as it’s becoming a preferred cryptocurrency among retail investors. Interestingly, Dogecoin’s price trends have mirrored that of Bitcoin to some extent. In recent events, Bitcoin breaching the $100,000 mark has also propelled Dogecoin, pushing its price beyond the upper boundary of an ascending triangle it’s been confined within since November 23.

Ascending Triangle Breakout: The Key To Dogecoin’s Next Move

Based on a recent analysis shared by cryptocurrency expert Rekt Capital via social media, the price of Dogecoin has surpassed the upper boundary of an ascending triangle chart structure, as noted in the one-day candlestick timeframe.

When we see an “ascending triangle” pattern in a chart like Dogecoin’s, it usually means the bullish trend (price going up) will continue. If Dogecoin breaks out above this formation, it suggests strong optimism among investors. But for this to work, Dogecoin must hold its current level as a support. If it successfully retests the upper line of this triangle pattern, it could provide a strong boost for potential price increases in the near future.

According to Rekt Capital’s projection, the surest price target in such a case is at $0.569.

Bitcoin’s Influence On Dogecoin Price Action

Historically, Dogecoin’s price trend tends to follow Bitcoin’s during times when the market is positive. According to IntoTheBlock, Dogecoin’s price changes align closely with Bitcoin’s (a score of 0.96 out of 1, where 1 is maximum correlation). To give you an idea, Ethereum, the second-largest cryptocurrency, has a slightly lower correlation with Bitcoin (0.75).

The surge in Bitcoin’s price beyond $100,000 has revitalized market trust, leading to increased investment across significant cryptocurrencies such as Dogecoin. It’s worth noting that the rise in Bitcoin’s price also propelled Dogecoin to reach approximately $0.4582. Experts predict that as Bitcoin strengthens and continues its upward trend, it creates a positive atmosphere for Dogecoin and other alternative coins to escalate even more.

Conversely, since the performance of Dogecoin and Bitcoin are linked, Dogecoin’s possible surge to $0.569 depends on Bitcoin continuing its positive trend. If Bitcoin weakens or experiences a significant downturn, Dogecoin might find it challenging to keep its bullish trend moving forward.

Currently, as I’m typing this, the value of Dogecoin stands at approximately $0.4379. This indicates that the bulls are attempting to flip the resistance line of the triangle pattern into a support level. However, it’s important to note that there is a possibility of a drop in Dogecoin’s price, given the recent downward trend in Bitcoin’s value which has fallen below $100,000 once more within the past few hours.

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2024-12-06 21:41