As Bitcoin continues to attract significant inflows from institutional investors, Dogecoin’s price is on the move as it increasingly becomes the go-to cryptocurrency for retail investors. Interestingly, Dogecoin’s price performance is also highly correlated to Bitcoin’s price. As such, Bitcoin Recent breakout above $100,000 The price level witnessed the price of Dogecoin as well Breakout above the top of the ascending triangle Which has limited the price movement since November 23.
Ascending Triangle Breakout: Key to Dogecoin’s Next Step
according to Technical analysis of Dogecoin Price quoted by cryptocurrency analyst Rekt Capital on social media platform
the Ascending triangle pattern It often indicates a continuation of an uptrend. For Dogecoin, a break above this formation indicates bullish strength, but it depends on the asset holding this level as support. This is because Dogecoin price immediately started to retest the upper trend line of the ascending triangle pattern. If the retest is successful, it could serve as a starting point for a sustained rally in the coming weeks and months.
According to Rekt Capital forecasts, the safest target price in such a situation is $0.569.
The effect of Bitcoin on Dogecoin price movement
Historically, Dogecoin’s price path has mirrored Bitcoin’s price during periods of market optimism. According to IntoTheBlockDogecoin has a price correlation of 0.96 with Bitcoin on a scale of 1 at the maximum. To compare this, the price of Ethereum, the second largest cryptocurrency, has a price correlation of 0.75 with Bitcoin.
Bitcoin’s recent bullish breakout above $100,000 has reignited market confidence, encouraging inflows across major cryptocurrencies, including Dogecoin. Interestingly, the Bitcoin price hack also sent Dogecoin slightly higher to $0.4582. Analysts point out that as Bitcoin consolidates its gains and maintains its upward trajectory, it provides a favorable environment for the currency. Dogecoin and other altcoins To crowd more.
However, the correlation between the two assets means that Dogecoin’s potential breakout to $0.569 remains tied to Bitcoin’s ability to maintain its upward momentum. If Bitcoin falters or faces a sharp correction, Dogecoin may also struggle to maintain its bullish momentum.
At the time of writing, Dogecoin price is trading at $0.4379, which means that the bulls are still trying to turn the resistance trend line of the triangle formation into support. However, there is still a risk of a drop below the price of Dogecoin, especially given the fact that the price of Bitcoin fell below $100,000 again in the last few hours.
Featured image created with Dall.E, chart from Tradingview.com
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