Dogecoin has skilled heightened volatility over the past 48 hours, with its worth swinging from a low of $0.157 to a quick peak of $0.185. Though this transfer was a part of a rising bullish curiosity within the wider crypto market, the meme coin has since slipped again to $0.172 on the time of writing. This worth reversal locations Dogecoin in a precarious place, as soon as once more threatening to fall under the $0.17 stage that merchants had hoped would flip into a brand new assist base.
The sharp upswing and equally sharp retracement are the most recent examples of DOGE’s erratic buying and selling conduct, which is now drawing comparisons to a different macro-asset, Bitcoin’s efficiency in opposition to gold.
“Identical-Chart Syndrome”: Dogecoin Following Bitcoin’s Path
A chart shared on social media platform X by Bloomberg Intelligence Senior Analyst Mike McGlone presents an eye catching overlay of Dogecoin’s market cap trajectory and the Bitcoin-to-gold worth ratio. Based on McGlone, these two belongings have been transferring in the identical method for a while, exhibiting what he known as “same-chart syndrome.”
Significantly, the chart shared by the analyst reveals that Dogecoin’s market cap and the Bitcoin/gold cross have been transferring in tandem since December 2024. His evaluation highlights how each belongings have revered an upward trendline over the previous a number of months however warns that this assist might not final for much longer.
The resemblance between Dogecoin’s chart and Bitcoin’s efficiency relative to gold alerts to McGlone {that a} bearish end result could also be imminent. The synchronized patterns between the 2 charts, each rising aggressively in 2024 after which pulling again to an ascending assist line, counsel that DOGE could also be getting into a bearish cycle relatively than a full-fledged bullish cycle. Significantly, McGlone expects the ascending assist trendline to finally be breached very quickly.
Recession Fears Counsel DOGE Market Cap Might Crash Closely
Breaching the ascending assist trendline, as predicted by Mike McGlone, will certainly ship the Dogecoin market cap crashing. This contradicts the prevailing sentiment amongst analysts, who’re predicting a bigger rally for DOGE earlier than the top of the 12 months.
Nonetheless, McGlone didn’t base his bearish DOGE forecast solely on worth motion. In his submit, he tied the anticipated breakdown in each Dogecoin and Bitcoin/gold to broader macroeconomic developments, notably the chance of a delayed recession hitting the US market.
Notably, the ascending assist line that has stored the Dogecoin market cap in place is at the moment round $22 billion, making this an necessary stage to watch. On the time of writing, DOGE is buying and selling at $0.1720 with a market cap of $25.63 billion. Primarily based on its present circulating provide of 148.98 billion, Dogecoin’s market capitalization would fall under $22 billion if its worth have been to drop to $0.147.
Featured picture from Shutterstock, chart from Tradingview.com
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