Bitcoin has recently surged in price, reaching $102,700 within 24 hours and reclaiming the $100,000 level.
This has typically been positive for Dogecoin, which has a strong correlation with Bitcoin. However, Dogecoin has not been able to take advantage of Bitcoin's momentum and has fallen below its support level of $0.4.
Despite Bitcoin's recovery from a previous rejection at $100,000, Dogecoin has struggled to maintain upward momentum. It is currently trading at around $0.395, a 17% decline from its recent high of $0.48.
The main challenge for Dogecoin is breaking through the $0.48 resistance level. Dogecoin's last all-time high was $0.73 in May 2021, and analysts are divided on whether it will reach a new high in the current cycle.
Dogecoin's price surges have historically been driven by retail investor activity and social media trends. To surpass its previous high, Dogecoin would need a similar wave of enthusiasm and increased trading volume from both retail and institutional investors.
Some analysts speculate that a more favorable environment for Dogecoin could emerge in late 2024, potentially leading to new highs in early 2025.
The relationship between Bitcoin and Dogecoin remains important, and Dogecoin's ability to align with Bitcoin's performance will determine its future trajectory.