Bitcoin and Dogecoin are the two most watched assets in this round of the cryptocurrency cycle, with a high correlation in their price fluctuations. Recently, as Bitcoin's price exceeded the $100,000 mark, most funds flowed into Dogecoin, causing the correlation between the two prices to reach as high as 0.97.
Bitcoin's price has risen, but Dogecoin has failed to follow suit.
Despite Bitcoin's price breaking through $102,700 in the past 24 hours, this surge did not immediately translate into an increase for Dogecoin. During the same time period, Dogecoin fell below the support level of $0.4, failing to follow Bitcoin's upward trend.
Since December 10, Bitcoin has rebounded from a low of $94,900, gaining 7.5% and breaking through the psychological barrier of $100,000 again. However, Dogecoin's performance has been relatively weak, failing to maintain its upward momentum and instead experiencing a decline.
Challenges and key resistance levels faced by Dogecoin
On December 8, Dogecoin successfully rebounded to $0.48, a price level not reached since 2021. However, Dogecoin's price struggled repeatedly around $0.48, failing to break through this resistance level.
With market fluctuations, Dogecoin's price fell from $0.48 to the current $0.395 in just a few days, a decline of about 17%. In the past seven days, Dogecoin has dropped 13%, making it one of the worst performers among the top 10 cryptocurrencies by market cap.
Is it possible for Dogecoin to break its historical high?
Regarding whether Dogecoin will set a new high in this cycle, market analysts have provided different predictions. Dogecoin's historical highest price of $0.73 was reached during the crypto bull market in May 2021, and while breaking this price in this cycle is still possible, it faces several challenges. Especially given that Dogecoin's price has not effectively followed Bitcoin's upward trend, the difficulty of breaking historical highs has increased.
Nevertheless, some analysts believe that Dogecoin may regain its upward trend, especially if interest from social media and retail investors reignites. Historically, the price surges of Dogecoin have often been accompanied by heated discussions on social media and sudden investor actions. If the market experiences a similar wave of enthusiasm as in 2021, Dogecoin is expected to break its historical high. Public. Sticky rice. Good: Six Six Says Coin (Weekly strategy analysis of Bitcoin and Ethereum from Monday to Saturday, long-term recommendations for quality individual coins and live analysis)
Although Dogecoin is currently facing some price corrections and market pressures, as we approach the end of 2024, 2025 may bring new opportunities for Dogecoin. Changes in the global economic and political landscape, especially events such as President Trump's return to power, could have a positive impact on the cryptocurrency market, providing greater upward momentum for Dogecoin. Therefore, the possibility of Dogecoin setting a new high in early 2025 still exists, and the outlook is promising.