Dogecoin Struggles to Keep Up as Bitcoin Surpasses $100,000

Bitcoin and Dogecoin are prominent cryptocurrencies, with a price correlation reaching 0.97. Recently, Bitcoin surpassed $100,000, peaking at $102,700, yet this surge did not positively affect Dogecoin, which fell below its support level of $0.4.

Dogecoin's Recent Performance Amid Bitcoin's Surge

Bitcoin increased by 7.5% from a low of $94,900 on December 10, recovering from previous liquidations at the $100,000 mark. In contrast, Dogecoin struggled to maintain upward momentum, briefly rising to $0.48 on December 8 but facing resistance at this level. Currently, Dogecoin trades at $0.395, a 17% drop from its recent high and a 13% decline over the past week, making it the worst performer among the top 10 cryptocurrencies by market cap.

Is A New Dogecoin All-Time High Still Possible This Cycle?

Analysts have varied predictions about Dogecoin's potential to reach a new all-time high, last recorded at $0.73 in May 2021. Although breaking this resistance is possible, challenges remain, particularly if Dogecoin continues to diverge from Bitcoin's performance. Historically, Dogecoin price surges have correlated with spikes in retail investor interest, often driven by social media rumors. For Dogecoin to surpass its 2021 peak, significant trading volume and renewed engagement from investors are necessary.

As 2024 concludes, a more favorable scenario for Dogecoin achieving new highs might develop in early 2025, influenced by shifts in the global economic landscape and potential political changes.

Featured image from Bankrate, chart from TradingView