Strong Growth for Dogecoin This Year
Dogecoin (DOGE) has shown remarkable growth. This month, it reached $0.4795, its highest level since May 2021, supported by the broader crypto market rally.
As of November 28, DOGE was trading at $0.40, representing a 365% increase from its September low.
Correlation Between Dogecoin and Bitcoin
Dogecoin benefits from bitcoin's (BTC) performance, as BTC approaches the $100,000 mark, surpassing its all-time high. Historical data show that bitcoin and dogecoin prices are closely linked. Analysis by IntoTheBlock reveals a correlation coefficient of 0.98 between the two cryptocurrencies, confirming their synchronized price movements.
If bitcoin surpasses $100,000 and reaches $122,000, as suggested by technical analysis, dogecoin could continue its bullish trajectory.
Factors Supporting Bitcoin’s Growth
Bitcoin is currently in a cup-and-handle pattern, signaling a bullish breakout. This pattern has been forming since March this year and culminated with BTC reaching $99,700 earlier this month.
Additionally, bitcoin often experiences growth in November and December due to seasonal trends. The rising interest in spot ETFs, with total assets now exceeding $101 billion, further boosts investor confidence. Political developments, such as the potential appointment of Paul Atkins (a crypto-friendly figure) as the next head of the Securities and Exchange Commission, also contribute to the market's positive sentiment.
Dogecoin Poised for Further Gains
If bitcoin reaches the projected $122,000, dogecoin’s price could see additional gains.
On the weekly chart, DOGE has formed a parabolic pattern and broken through the key resistance level of $0.2278, the high from March 2023, invalidating the previous bearish double-top pattern.
DOGE has also registered a golden cross between the 50-week and 200-week moving averages and surpassed the 50% Fibonacci retracement level at $0.03715.
Potential Targets and Risks for Dogecoin
Dogecoin is currently forming a bullish flag, a pattern that often precedes further upward movement. If this plays out, the next target could be its all-time high of $0.7400, representing an 85% gain from the current price.
However, a drop below $0.2278 could invalidate the bullish outlook.
Dogecoin remains well-positioned for further growth if bitcoin continues its upward trajectory towards the predicted levels.
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