How High Could Dogecoin Price Rise if Bitcoin Hits $122K

If Bitcoin reaches $122,000, Dogecoin’s price could see a significant rise, potentially setting new highs. As of November 28, 2024, Dogecoin has been performing exceptionally well, trading at around $0.40. This represents a remarkable 365% increase from its low in September, and it mirrors Bitcoin’s own impressive growth as it neared the $100,000 mark. Historically, the price movements of Bitcoin and Dogecoin have shown a strong correlation, with both assets often moving in similar directions. Data from IntoTheBlock confirms this relationship, revealing a correlation coefficient of 0.98, suggesting that the two cryptocurrencies tend to move in tandem. Therefore, there is a strong possibility that Dogecoin will continue its bullish rally if Bitcoin surges to $122,000.

The potential rise of Bitcoin to $122,000 is based on a detailed technical analysis of its price chart. Bitcoin is currently exhibiting a “cup and handle” pattern, a bullish formation that is typically followed by a breakout. The “cup” part of the pattern represents a rounded bottom, while the “handle” represents a period of consolidation or a slight pullback. From March 2024 to November 2024, Bitcoin has been forming the “handle,” and its recent breakout past $99,700 suggests that the price could continue climbing, with $122,000 being the next target. Moreover, Bitcoin’s price often experiences a seasonal boost in November and December, making the outlook for a rise to $122,000 even more plausible.

In addition to the technical factors, there are also external factors contributing to Bitcoin’s positive momentum. For instance, the potential appointment of Paul Atkins, a figure well-known in the cryptocurrency industry, as the next head of the U.S. Securities and Exchange Commission (SEC) could be seen as a positive development for the crypto market. Additionally, the growing popularity of spot Bitcoin exchange-traded funds (ETFs), which have accumulated over $101 billion in total assets, further boosts market confidence and drives Bitcoin’s upward momentum.

As Bitcoin’s price approaches $122,000, the impact on Dogecoin is likely to be positive, given the strong historical correlation between the two assets. On the technical side, Dogecoin has already made significant progress, with the price breaking past a critical resistance level at $0.2278, which was the high set in March 2023. This breakout invalidated a previous double-top pattern, which had suggested a potential price reversal. Dogecoin has also formed a “golden cross” on its weekly chart, where the 50-week moving average crosses above the 200-week moving average. This is considered a bullish signal, as it suggests that the long-term trend is turning positive.

Furthermore, Dogecoin has risen above the 50% Fibonacci Retracement level at $0.03715, another bullish sign that the coin is poised for further gains. The current chart pattern also suggests that Dogecoin may be forming a bullish flag or pennant pattern, which typically precedes a strong breakout. If this pattern plays out, Dogecoin’s price could target $0.7400, which is its all-time high. This would represent an 85% gain from its current price of $0.40, highlighting the potential for substantial upside in the coming months.

However, it’s important to note that for Dogecoin to maintain this bullish outlook, it needs to hold above the key support level at $0.2278. A drop below this level would invalidate the current bullish patterns and could trigger a price reversal. As long as Dogecoin stays above this level and Bitcoin continues its ascent toward $122,000, the cryptocurrency could experience significant growth.

In conclusion, if Bitcoin rises to $122,000, Dogecoin’s price could follow suit, potentially reaching $0.74 or even higher. The historical correlation between Bitcoin and Dogecoin, along with Dogecoin’s current bullish technical indicators, suggests that the meme coin has strong potential for further gains. However, the continuation of this bullish trend depends on maintaining key support levels, with $0.2278 being a critical level to watch. Should Dogecoin break out from its current bullish pattern, the price could surge significantly, driven by Bitcoin’s strength and broader market optimism.