Can Dogecoin Price Rise to $0.7400 if Bitcoin Hits $122K?
The recent surge in Dogecoin (DOGE) price has caught the attention of crypto enthusiasts, with its current price reaching $0.40, a 365% increase from its September low. This price action mirrors that of Bitcoin (BTC), which has approached $100,000, setting a new record. Historically, Dogecoin and Bitcoin prices have moved in tandem, with a correlation coefficient of 0.98 between the two.
Tesla’s $1.5 Billion in Bitcoin
In a recent analysis, we noted that technicals pointed to an eventual jump to $122,000 for Bitcoin. This view is based on the coin’s cup and handle pattern on the weekly chart. The handle lasted from March to earlier this month when it made a bullish breakout to $99,700. Additionally, Bitcoin has strong seasonal fundamentals since its price often rises in November and December. Furthermore, the potential nomination of Paul Atkins, a popular figure in the crypto industry, as the next head of the Securities and Exchange Commission, could also contribute to a Bitcoin price surge.
Spot Bitcoin ETFs and Market Confidence
Spot Bitcoin ETFs have also gained traction, with total assets exceeding $101 billion, further boosting market confidence. This increase in market confidence can lead to a rise in Dogecoin price as well, as the two cryptocurrencies have historically moved in tandem.
Dogecoin Price Rally to Continue
Dogecoin’s price appears poised for further gains if Bitcoin climbs to $122,000 as projected. On the weekly chart, Dogecoin has gone parabolic and crossed a critical resistance level at $0.2278, its March 2023 high, invalidating a previous double-top pattern. The coin has also formed a golden cross pattern, with the 50-week and 200-week moving averages crossing, and has risen above the 50% Fibonacci Retracement level at $0.03715.
Bullish Flag or Pennant Pattern
Dogecoin is now forming a bullish flag or pennant pattern, which often precedes a strong breakout. If this occurs, the next target could be $0.7400, its all-time high, representing an 85% gain from current levels. However, a drop below $0.2278 would invalidate this bullish outlook.
Predictions
Based on the analysis, it’s possible that Dogecoin price could rise to $0.7400 if Bitcoin hits $122K. This is because the two cryptocurrencies have historically moved in tandem, and the recent price action of Dogecoin has mirrored that of Bitcoin. Additionally, the formation of a bullish flag or pennant pattern on the weekly chart suggests a strong breakout is possible.
However, it’s essential to note that the crypto market is highly unpredictable, and there are many factors that could influence the price of Dogecoin. Therefore, investors should do their own research and consider their own risk tolerance before making any investment decisions.
Key Takeaways
- Dogecoin price has reached $0.40, a 365% increase from its September low.
- The price action of Dogecoin mirrors that of Bitcoin, which has approached $100,000.
- The correlation coefficient between Dogecoin and Bitcoin is 0.98.
- Dogecoin has formed a golden cross pattern and a bullish flag or pennant pattern on the weekly chart.
- If Bitcoin hits $122K, Dogecoin price could rise to $0.7400, representing an 85% gain from current levels.
Conclusion
The recent surge in Dogecoin price has caught the attention of crypto enthusiasts, and the formation of a bullish flag or pennant pattern on the weekly chart suggests a strong breakout is possible. If Bitcoin hits $122K, Dogecoin price could rise to $0.7400, representing an 85% gain from current levels. However, investors should do their own research and consider their own risk tolerance before making any investment decisions.
