Dogecoin price action is currently stuck between two critical technical levels, the golden macro pocket and the 0.5 Fibonacci macro retracement level. This observation was highlighted by crypto analyst Kevin (@Kev_Capital_TA) on social media platform
The influence of Bitcoin on the market movement of Dogecoin
As the world’s largest cryptocurrency, general sentiment towards other cryptocurrencies is generally always linked to sentiment towards Bitcoin. Periods of high inflows to Bitcoin are always highlighted by inflows to other cryptocurrencies, and vice versa, except during altcoin seasons.
Like the the largest coinDogecoin is one of the biggest reflections of Bitcoin sentiment. 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 0.9 range, especially during rallies. In his commentary, crypto analyst Kevin noted that Dogecoin’s current price trajectory is not self-determined but rather heavily influenced by Bitcoin’s performance.
As it stands, recent market dynamics have seen the price of Dogecoin stuck between the golden pocket macro and the 0.5 Fibonacci macro levels. In technical analysis, the golden pocket 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 crossing them in either direction could lead to a notable breakout.
Patience as a strategy
Dogecoin price is struggling with a lack of momentum and struggling to replicate the notable rallies seen in October and November. During this period, Dogecoin captured the market’s attention with an impressive upward movement of over 400%, largely driven by enthusiasm before and after the US presidential election.
However, this 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 optimistic and technical analysis suggests that Dogecoin price still has a lot of room to maneuver.
“I don’t see anything that tells me the cycle is over; therefore, this is expected to increase fairly soon, regardless of short-term noise,” he said. commented.
At the time of writing, Dogecoin is trading at $0.404 and is down approximately 3.5% over the past 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
