Over the last 24 hours, Bitcoin price has dropped around 8% after failing to extend its previous upward momentum. The impact of this fall has subsequently been reflecting in altcoin charts as well. Though in this article, we will particularly focus on Dogecoin – an altcoin with the fifth richest market cap, and counting.
As you notice, the price activities in last 24 hours (thanks to the CoinGecko’s intuitive chart above), you may see how DOGE/USD has dropped from 15,235 to 14,342 satoshi. But overall, the meme-based cryptocurrency is still looking like its good colleagues, Litecoin and Darkcoin, which have both fallen 6-8% within the same time span.
I personally believe it is ridiculous to predict Dogecoin value based on technical analysis. Instead, I will rather focus on Bitcoin price movements, or fundamentals, to predict where Dogecoin could reach in upcoming days. So, here I go..
Bitcoin currently is acting like a funambulist who is trying to balance its way between equally strong support and resistance levels. Its price, in last few days, has attempted to go past 250 to establish a smoother bull run. However, it eventually has met with disappointment thanks to the strong bearish sentiment around these resistance areas.
Similarly, Dogecoin is displaying an intermediate correlation with the Bitcoin price movements – hanging between the strong support and resistance levels around 13,553 and 16,771 satoshi, respectively. I also believe traders to have been using Dogecoin as some sort of alternative investment for being a trustworthy and community-powered cryptocurrency. So even if Bitcoin price breaks below its prevailing bottoms, we might expect a little-to-medium shift of traders towards Dogecoin, adding some value or market cap to the coin in best-case.
Meanwhile, let’s just keep our focus on the moon. That is what Dogecoin is all about, after all.
Image Credits: Dogecoin, CoinGecko.
