The most popular meme coin, Dogecoin (DOGE), seems ready to follow the rise of Bitcoin (BTC). According to well-known cryptocurrency trader DonAlt, DOGE is one of the few altcoins that can outperform the largest crypto. His bullish view on Dogecoin was reiterated in a recent analysis.
Dogecoin’s Potential: Towards $1?
DonAlt stressed that Dogecoin has the ability to enter a new growth phase, similar to the period when DOGE price rose from $0.11 in October to $0.40 in mid-November. He predicted that if the next wave is at least half the size of the first wave, Dogecoin may refresh its price record and finally break through the long-awaited $1 mark.
The optimism surrounding Dogecoin stems from its historical price action and the pattern often seen after consolidation. According to DonAlt, DOGE has twice shown strong gains within a short period of time (e.g. within an hour) after a consolidation phase. Now, such a phase seems to be occurring again, giving traders speculative optimism.
Strong reliance on Bitcoin
Despite Dogecoin’s strong outlook, DonAlt stressed that Bitcoin remains the driving force behind the broader bull market. The leading cryptocurrency continues to break new all-time highs, creating a bullish environment for other cryptocurrencies.
Bitcoin recently hit a new all-time high (ARH) of $94,732 on Binance, further improving its all-time high. This marks a continued rise since President-elect Donald Trump’s re-election on November 5 and increased pro-crypto regulation. This price increase has boosted investor confidence and further fueled interest in alternative cryptocurrencies such as Dogecoin.
Analysts said that Bitcoin's consistency also laid a solid foundation for the benefits of altcoins such as DOGE. The sharp increase in Bitcoin ETF inflows and the launch of spot Bitcoin ETF options have also stimulated more institutional interest in the cryptocurrency market.
