Dogecoin price action is currently stuck between two critical technical levels, the golden macro pocket and the 0.5 Fibonacci retracement macro level. This observation was <a target="_blank" style="font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen-Sans, Ubuntu, Cantarell, 'Helvetica Neue', sans-serif;" href="https://x.com/Kev_Capital_TA/status/1867353105178013892″ target=”_blank” rel=”noopener nofollow”>Featured by cryptanalyst Kevin (@Kev_Capital_TA) on the social media platform
The influence of bitcoin on the movement of the Dogecoin market
As the largest cryptocurrency in the world, general sentiment towards other cryptocurrencies is always tied to sentiment towards bitcoin. Periods of high bitcoin inflows are always highlighted by inflows of other cryptocurrencies, and vice versa, except during altcoin seasons.
like him biggest meme coinDogecoin is one of the biggest reflections of sentiment in bitcoin. According to data from IntoTheBlock, Dogecoin currently has a price correlation of 0.77 with bitcoin on a maximum scale of 1. Interestingly, this correlation sometimes even stays in the range of 0.9, especially during rallies. In his comment, crypto analyst Kevin noted that Dogecoin's current price trajectory is not self-determined, but is heavily influenced by bitcoin's performance.
As things stand, recent market dynamics have seen the price of Dogecoin caught between the macro pocket of gold and the 0.5 Fibonacci macro levels. In technical analysis, the gold stock is a region between the 61.8% and 65% retracement levels. These levels, commonly used in technical analysis, serve as support and resistance zones, and breaking them in either direction could lead to a notable breakout.
Patience as a strategy
Dogecoin price has been dealing with a lack of momentum and has struggled to replicate the notable rallies seen in October and November. During that period, Dogecoin captured the market's attention with an impressive upward move of over 400%, driven largely by enthusiasm before and after the US presidential election.
However, that bullish sentiment seems to have decreased, leaving the meme coin now wandering around the $0.4 mark. Additionally, bitcoin's inability to sustain a significant breakout above the $100,000 price level has cast a shadow over altcoins like Dogecoin, whose performance is often tied to bitcoin's market behavior.
Despite the current price stagnation, crypto analysts like Kevin remain bullish on the meme coin. Social media mentions remain bullish and technical analysis suggests Dogecoin price <a target="_blank" href="https://www.newsbtc.com/news/dogecoin/dogecoin-crypto-crash-looks-incredible/” rel=”nofollow noopener” target=”_blank”>still has plenty of room to run.
“I don't see anything that tells me that the cycle is over; therefore, this should rise soon enough, regardless of the near-term noise,” he said. <a target="_blank" href="https://x.com/Kev_Capital_TA/status/1867353105178013892″ rel=”nofollow” target=”_blank”>commented.
At the time of writing, Dogecoin is trading at $0.404 and is down approximately 3.5% in the last 24 hours. bitcoin, on the other hand, is trading at $99,800 and is down 0.8% in 24 hours.
Featured image created with Dall.E, chart from Tradingview.com
