Dogecoin has performed well this month, reaching $0.4795, its highest level since May 2021, as the overall cryptocurrency rally has intensified. Dogecoin (DOGE) was trading at $0.40 on November 28, marking a 365% increase from its September low.
This price action mirrors that of Bitcoin (BTC), which has reached nearly $100,000, setting a new record. Historically, the prices of Dogecoin and Bitcoin have moved in tandem. Data from IntoTheBlock shows a correlation coefficient of 0.98 between the two coins, indicating similar price movements.
Therefore, it is likely that Dogecoin will continue its strong upward momentum as Bitcoin breaks above $100,000. In a recent Bitcoin analysis, we noted that technical indicators point to an eventual move to $122,000. This view is based on the coin’s cup and handle pattern on the weekly chart.
As the name suggests, this pattern consists of a rounding bottom followed by a retracement or consolidation. Bitcoin lasted from March until earlier this month when it broke out to the upside to $99,7000.
Bitcoin also has some strong seasonal fundamentals as its price typically increases in November and December. On top of that, Trump is reportedly considering crypto industry luminary Paul Atkins as the next head of the Securities and Exchange Commission.
Spot Bitcoin ETFs have also gained traction, with total assets exceeding $101 billion, further boosting market confidence.
Dogecoin Price Continues to Rise
Dogecoin price looks set to rise further if Bitcoin surges to $122,000 as expected.
On the weekly chart, Dogecoin surged and broke above a key resistance level at $0.2278, the March 2023 high, invalidating the previous double top pattern.
The coin has also formed a golden cross pattern, with its 50-week and 200-week moving averages converging and has risen above the 50% Fibonacci retracement level at $0.03715.
Dogecoin is currently forming a bullish flag or pennant pattern, which usually precedes a strong breakout. If this occurs, the next target could be $0.7400, the all-time high, representing an 85% increase from current levels. However, a drop below $0.2278 would invalidate this bullish outlook.
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