DailySun
This month, Dogecoin has shown impressive growth, hitting $0.4795, marking its highest point since May 2021, supported by a broader crypto market rally.
On Nov. 28, Dogecoin (DOGE) was trading at $0.40, which is a remarkable 365% increase from its low in September.
The price movement was akin to that of Bitcoin (BTC), which neared $100,000, setting a new milestone. Historically, Dogecoin and Bitcoin have displayed a close relationship in price movements. Data from IntoTheBlock indicates a correlation coefficient of 0.98 between the two cryptocurrencies, suggesting they often move together.
As such, it is likely that Dogecoin will maintain its bullish trend as Bitcoin approaches the $100,000 mark. A recent analysis of Bitcoin revealed that technical indicators suggest a potential rise to $122,000, supported by the cup and handle formation observed on the weekly chart.
The cup and handle pattern consists of a rounded bottom followed by a pullback or consolidation. Bitcoin’s handle formation persisted from March until earlier this month, culminating in a bullish breakout that reached $99,700
Additionally, Bitcoin has demonstrated strong seasonal trends, often witnessing price increases during November and December. Moreover, there are rumors that Trump is considering Paul Atkins, a prominent figure in the crypto space, for the next head of the Securities and Exchange Commission.
Spot Bitcoin ETFs have experienced growth as well, with total assets surpassing $101 billion, enhancing investor confidence in the market.
Anticipated Continuation of Dogecoin’s Price Rally
If Bitcoin reaches the anticipated target of $122,000, Dogecoin’s price is likely to surge further.
On the weekly chart, Dogecoin has taken a parabolic trajectory, surpassing a significant resistance level at $0.2278, which was its high in March 2023, thereby negating a previous double-top pattern.
The cryptocurrency has also formed a golden cross pattern, with the 50-week and 200-week moving averages intersecting, and it has risen above the 50% Fibonacci Retracement level at $0.03715.
Currently, Dogecoin is establishing a bullish flag or pennant formation, a pattern that often precedes a robust breakout. Should this transpire, the next goal may be $0.7400, its all-time high, indicating an 85% increase from current prices. However, a decline below $0.2278 would invalidate this optimistic perspective.
