The Dogecoin price is experiencing a surge as institutional investors continue to show interest in Bitcoin. Retail investors are increasingly turning to Dogecoin, which has shown a strong correlation with Bitcoin’s price movements. Following Bitcoin’s recent breakthrough above $100,000, Dogecoin has also broken above the top of an ascending triangle pattern that has been in place since November 23.
A technical analysis by Rekt Capital on social media platform X highlights the breakout of Dogecoin’s price above the upper trendline of an ascending triangle pattern. This pattern typically indicates a continuation of a bullish trend, with the breakout signaling strength. The key now is for Dogecoin to hold this level as support, as a successful retest could lead to a sustained rally in the coming weeks and months. Rekt Capital’s projection suggests a price target of $0.569 in such a scenario.
Historically, Dogecoin’s price movement has closely followed Bitcoin’s during periods of market optimism. The correlation between the two assets is high, with Dogecoin having a 0.96 price correlation with Bitcoin compared to Ethereum’s 0.75. Bitcoin’s recent breakout above $100,000 has boosted market confidence and led to a rally in Dogecoin to $0.4582. Analysts believe that as Bitcoin maintains its bullish trajectory, it creates a favorable environment for Dogecoin and other altcoins to rally further.
However, Dogecoin’s potential breakout to $0.569 is tied to Bitcoin’s ability to sustain its upward momentum. If Bitcoin experiences a sharp correction, Dogecoin could struggle to maintain its bullish momentum. Currently, Dogecoin is trading at $0.4379, with bulls attempting to turn the resistance trendline of the triangle formation into support. There is a risk of a break below this level, especially as Bitcoin has recently dipped below $100,000 again.
In conclusion, Dogecoin’s price movement is closely linked to Bitcoin’s performance, with the two assets showing a strong correlation. The recent breakout in Dogecoin’s price above the ascending triangle pattern suggests bullish strength, but the key will be for Dogecoin to hold this level as support for a sustained rally. As Bitcoin continues its bullish trajectory, it provides a positive environment for Dogecoin and other altcoins to thrive, but any setbacks in Bitcoin’s price could impact Dogecoin’s momentum as well.
