Coin Times Report:
DOGE has been the primary beneficiary of BTC’s latest cycle, despite its high-risk, high-reward status, it continues to thrive. Now, as the market takes a 180-degree turn, DOGE may still continue to benefit.
In the past year, meme coins have taken center stage, with Dogecoin (DOGE) leading the pack with an impressive 10% weekly gain. According to AMBCrypto, bullish sentiment surrounds DOGE, with a short-term target of $0.16. However, an important resistance level around $0.20, which has not been tested by DOGE in 155 days, poses a significant hurdle.
Given DOGE’s performance in comparison to Bitcoin (BTC), the hidden patterns identified by AMBCrypto could provide the necessary support for DOGE to weather the volatility. If conditions are favorable, this pattern could propel DOGE into a parabolic rebound.
A short-term adjustment for DOGE may be inevitable, as the last time it touched $0.14 was during a mid-July bounce. After more than 150 days of stagnation, DOGE made a strong comeback, dispelling concerns that it was overshadowed by new meme coins.
October has proven to be particularly optimistic for DOGE. While the initial momentum was driven by BTC, the daily gains for DOGE in the second half of the month exceeded 5%, far surpassing BTC.
Historically, a recurring pattern has emerged, where as capital begins to shift from BTC, particularly when it approaches high-risk territory, the end of the cycle often brings substantial gains for specific cryptocurrencies. DOGE has undoubtedly been the primary beneficiary of this trend, successfully surpassing the previous $0.14 resistance level to reach new highs.
Currently trading at $0.1384, a short-term adjustment from the peak of $1.40 is inevitable, especially with DOGE showing overbought conditions in multiple aspects. Due to the 84% price increase in the past two weeks, a trend reversal is imminent.
Now, the next opportunity for a decline may occur around $0.12, the last resistance level. Four days ago, a market correction occurred as 7 million DOGE entered the exchanges, indicating market overheating. However, accumulation soon began. Spot traders are watching for the next decline, expecting another rebound, which largely depends on BTC’s next move. So, should you buy the dip?
Unless BTC undergoes a price reversal, which currently mirrors the late September cycle when BTC faced resistance at $6,600, this level remains crucial for DOGE holders. A rebound in BTC could restore confidence in high-cap meme coins like DOGE. However, given its inherent volatility, it is best to wait for market stability before placing bets, especially from a psychological standpoint.
On the other hand, DOGE’s resilience during the recent market downturn suggests that BTC investors may turn to it, as DOGE has consistently remained in the green, with a weekly surge of 10%. Large holders have been withdrawing significant amounts of DOGE from exchanges since BTC retreated from its earlier $69,000 peak, with current withdrawal volume exceeding 500 million DOGE. This indicates confidence from traders and investors in DOGE, with an expectation that DOGE will soon reach $0.14 and potentially rebound to $0.20.
This optimistic sentiment may also motivate HODLers to continue investing, believing that the next market cycle could yield higher returns. According to AMBCrypto, the current “dip” may be a short-term resistance. Regardless of the reality, here is the market value of DOGE under BTC conditions:
Once BTC regains a bullish momentum, DOGE may reach $0.20 by the end of the fourth quarter. Meanwhile, short-term profits are still possible as DOGE continues to dominate the top meme coin charts, making the current dip an opportune time for investors to enter.
