“Dogecoin Price Potential with Bitcoin at $122k: Exploring Growth Opportunities”
Dogecoin has been on a roll this month, hitting $0.4795, its highest point since May 2021. This surge has been part of a bigger crypto market rally that’s been gaining steam.
As of November 28th, Dogecoin was trading at $0.40, showing a whopping 365% increase from its low point in September. Interestingly, Dogecoin’s price movement has been closely linked to Bitcoin’s performance. Data from IntoTheBlock indicates a strong correlation coefficient of 0.98 between the two, meaning they tend to move in similar directions.
With Bitcoin edging closer to $100,000 and possibly heading towards $122,000, Dogecoin could very well ride the wave of this bull run. In fact, looking at Bitcoin’s cup and handle pattern on the weekly chart, there seems to be a potential for a significant jump in its price.
The cup and handle pattern is characterized by a rounded bottom followed by a pullback or consolidation. In Bitcoin’s case, the handle phase lasted from March to earlier this month before making a bullish breakout to nearly $100,000.
Moreover, Bitcoin typically sees price upticks in November and December, adding to the positive sentiment in the market. Additionally, with the news of the potential appointment of a crypto-friendly figure to lead the Securities and Exchange Commission, investors are feeling more optimistic.
Dogecoin, too, seems to be gearing up for more gains, especially if Bitcoin continues to climb. The weekly chart for Dogecoin shows a strong upward trend, breaking through a crucial resistance level of $0.2278, its high from March 2023. It has even formed a golden cross pattern, signaling potential for further growth.
Currently, Dogecoin is in the process of forming a bullish flag or pennant pattern, which often precedes a breakout. If this pattern plays out as expected, we could see Dogecoin aiming for $0.7400, its all-time high, representing an 85% increase from its current levels. Just keep an eye on that $0.2278 support level to ensure this positive outlook stays intact.
