Bitcoin and Dogecoin are two of the most closely watched cryptocurrencies this cycle, and Bitcoin price increases mainly impact Dogecoin’s price. At one point, the price correlation between Dogecoin’s price and Bitcoin’s price was 0.97.

Interestingly, recent market movements have had an impact on the price of Bitcoin return above the $100,000 price level again, with the leading cryptocurrency reaching 102,700 in the last 24 hours. However, this has not yet translated into a corresponding augment in the price of Dogecoin for the meme coin break below support during the same period at a price of $0.4.

Dogecoin’s latest performance amid a surge in Bitcoin prices

Bitcoin has once again breached the psychological threshold of $100,000 after its price rose 7.5% from its December 10 low of $94,900. It is worth noting that this upward move is Bitcoin’s latest bounce after the rejection at the $100,000 price level, which caused a shock wave of liquidation among other cryptocurrencies.

But while Bitcoin has shown resilience, Dogecoin has faced significant challenges in maintaining its upward momentum. Dogecoin managed to rise to $0.48 on December 8, a level it has not reached since 2021. However, a detailed examination of the meme coin’s price action reveals a recurring struggle with the $0.48 resistance level, which currently appears to be the resistance level to break this market cycle.

At the time of writing, Dogecoin is currently trading at $0.395, meaning it has lost approximately 17% since reaching a 2024 high of $0.48. As it stands, Dogecoin is down approximately 13% over the past seven days, making it the worst performer among the 10 cryptocurrencies with the largest market capitalization over this time frame.

Is a fresh all-time high for Dogecoin still possible this cycle?

Market analysts do made various predictions regarding the possibility and timeline for the Dogecoin price to reach a fresh record high in the current cycle. ogecoin last reached its peak price of $0.73 during the cryptocurrency bull market in May 2021. The prospect of breaking above this level in this cycle still exists, but the path forward seems complex, especially if Dogecoin’s price were to continue to break away from Bitcoin growth.

However, this can be argued general consensus is for Dogecoin to resume its upward trend in the near future. Historically, Dogecoin price increases have resulted from sudden spikes in retail investor activity, often due to social media rumors such as payments on X and the like. For Dogecoin to surpass its 2021 high, a similar wave of enthusiasm would need to emerge along with significant trading volume and renewed interest from both retail and institutional investors.

As 2024 comes to an end, a more likely scenario of Dogecoin reaching fresh highs could emerge in early 2025. By then, a change in the global economic and political landscape, including the inauguration of Donald Trump as president, could create market optimism in the cryptocurrency sector.

Featured image from Bankrate, chart from TradingView