Trusted

Dogecoin (DOGE) Price’s 65% Rally Hinges on Bitcoin’s Next Move

2 mins
Updated by Harsh Notariya
Join our Trading Community on Telegram

In Brief

  • Dogecoin’s price is bouncing off the critical support floor, inching closer to a breakout from the descending wedge.
  • Demand amongst the investors remains high as about $5 billion worth of DOGE is awaiting a trigger to turn profitable.
  • There is hope for DOGE’s recovery, but that does not come from the investors but from BTC owing to a high correlation.
  • promo

Dogecoin (DOGE) has recently captured the attention of cryptocurrency investors as it hovers within a bullish descending wedge pattern. 

However, weak broader market cues have kept a breakout at bay, leaving many wondering whether one is imminent or if DOGE will continue to consolidate.

Dogecoin Investors Want a Rise

Despite the current price stagnation in Dogecoin’s price, investor sentiment remains largely bullish. The Global In/Out of the Money (GIOM) indicator shows that approximately 60.72 billion DOGE, valued at $5.76 billion, is poised for profits. 

This supply was acquired between $0.101 and $0.130, a range that has historically acted as a crucial support and resistance zone. The optimism is further supported by the fact that DOGE’s recent price dips have been met with substantial buying interest. 

Read More: Dogecoin (DOGE) vs Shiba Inu (SHIB): What’s the Difference?

Dogecoin GIOM.
Dogecoin GIOM. Source: IntoTheBlock

Furthermore, Dogecoin’s macro momentum is heavily influenced by Bitcoin (BTC), as the two cryptocurrencies share a high correlation of 0.92. This correlation means that DOGE’s price movements are closely linked to Bitcoin’s performance. When Bitcoin experiences price changes, Dogecoin often follows suit, albeit with varying intensity. 

Bitcoin’s recent price behavior has been a mix of consolidation and minor uptrends, keeping DOGE in a similar pattern. However, a downturn in Bitcoin’s price could also dampen DOGE’s rally, making BTC’s performance a crucial factor in Dogecoin’s near-term future.

Dogecoin Correlation to BTC.
Dogecoin Correlation to BTC. Source: TradingView

DOGE Price Prediction: Breaking out Is the Aim

Dogecoin’s price is currently holding above the critical support floor of $0.094. This level has provided a reliable base for price bounces in the past. Despite several attempts, DOGE has failed to breach the resistance at $0.118, leading to a period of consolidation.

If DOGE manages to break through the $0.118 resistance, it would also mark a breakout from the descending wedge pattern. Such a move could trigger a 65% rally, with the next target being $0.182. This price level represents a significant gain and also restores confidence in DOGE’s potential for further growth. 

Read More: Dogecoin (DOGE) Price Prediction 2024/2025/2030

Dogecoin Price Analysis.
Dogecoin Price Analysis. Source: TradingView

However, the resistance levels at $0.130 and $0.118 have been tested multiple times in the past, making them formidable barriers. A failure to breach either of these levels could result in continued consolidation above $0.094. In this scenario, DOGE might struggle to gain upward momentum, leading to the invalidation of the bullish thesis.

Top crypto projects in the US | October 2024
Exodus Exodus Explore
Coinrule Coinrule Explore
Uphold Uphold Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | October 2024
Exodus Exodus Explore
Coinrule Coinrule Explore
Uphold Uphold Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | October 2024

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Frame-2t314.png
Aaryamann Shrivastava
Aaryamann Shrivastava is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including Telegram Apps, liquid staking, Layer 1s, meme coins, artificial intelligence (AI), metaverse, internet of things (IoT), Ethereum ecosystem, and Bitcoin. Previously, he conducted market analysis and technical assessments of various altcoins at FXStreet and AMBCrypto, covering all aspects of the crypto industry, including...
READ FULL BIO
Sponsored
Sponsored