Biyecoin Network Report:
Dogecoin is the altcoin with the highest correlation to Bitcoin over the past 30 days. DOGE bottomed near its 2023 high but has the potential to reach its 2021 peak.
Dogecoin [DOGE] and Bitcoin [BTC], as highlighted by IntoTheBlock’s correlation matrix, often see their price movements reflect BTC’s price changes. This relationship suggests that as Bitcoin’s price rises, DOGE typically follows suit, which is something traders would not want to see continue if Bitcoin turns bearish.
Cryptollica analysts noted in a recent broadcast that Dogecoin has been very effective in attracting new investors to the cryptocurrency market. This appeal is supported by on-chain data, showing a growing interest from retail investors. Although opinions on Dogecoin’s influence vary, it undoubtedly plays a positive role in broader cryptocurrency adoption, which may help during Bitcoin’s upward trends.
Dogecoin Price Prediction
The DOGE/USDT on the weekly timeframe chart shows it bottomed near its 2023 high, marking the end of its previous bull market. This positioning indicates a significant recovery, as DOGE shows signs of returning to its peak levels of 2021. With the recent upward trend, Dogecoin reflects similar patterns observed in earlier bull markets, suggesting it might be initiating a new meme coin super cycle as we move into 2025. The current price action above the Fibonacci retracement levels of previous highs implies that Dogecoin could see substantial gains. If this momentum continues, Dogecoin might reach a new all-time high, leading a meme coin rally.
BTC’s Influence Peaks on DOGE
Further analysis of Dogecoin’s correlation with Bitcoin and the broader cryptocurrency market dynamics reveals that DOGE has shown resilience by establishing a base near its 2023 high. Despite Bitcoin’s dominance reaching 60% and experiencing volatility after the Federal Reserve’s rate cuts, Dogecoin has not mirrored Bitcoin’s new highs in 2024. However, historical patterns suggest that the upcoming meme coin season in 2025 might propel Dogecoin to new heights.
Is Your Portfolio Green? Check: Dogecoin Profit Calculator
Following the recent rate cuts, Bitcoin’s dominance briefly declined, which has historically favored altcoins over Bitcoin pairs. If this pattern persists, Dogecoin could rise as the market adjusts to these macroeconomic changes. As the year ends and quantitative tightening possibly concludes, DOGE could capitalize on market liquidity and investor sentiment, potentially making a strong comeback to its 2021 highs and participating in the next meme coin cycle.
