A prominent cryptocurrency analyst sparked a thought-provoking discussion on social media platform X, suggesting that Dogecoin’s price may reflect XRP’s performance during the previous bull market.
While most major cryptocurrencies hit new all-time highs during the 2021 bull market, XRP struggled to break above its previous peak. Now, cryptocurrency analyst Tony “The Bull” Severino drew comparisons to Dogecoin, which has a similar price movement, and raised the question: “What if Dogecoin pulls XRP during this cycle?” .
Draw parallels between XRP and Dogecoin prices
According to a technical analysis of the XRP and Dogecoin price charts that Tony shared on social media platform Despite being one of the top cryptocurrencies by market capitalization, XRP faced unique challenges that slowed its rise along with Bitcoin and Ethereum during the last bull market.
XRP saw a notable price increase, peaking at $1.95, but faced resistance with a 0.786 Fib extension from the 2020 low. As a result, XRP price failed to rise above its 2018 all-time high of $3.84 ahead of the 2022 bear market, much to the disappointment of many bullish supporters. Since then, XRP has traded primarily between $0.7 and $0.5, failing to see the sustained upward momentum needed to regain its previous highs.
The analyst further highlighted the price trend of Dogecoin using the monthly candlestick chart of the DOGE/USD pair. He noted that Dogecoin’s price recently rebounded at the 0.5 Fibonacci extension level from its 2022 low, which is very similar to the performance of XRP, where the price similarly rebounded at the 0.5 Fibonacci extension level from its 2020 low. He pointed out that this was a pattern.
Source:X
What does this mean for DOGE?
The cryptocurrency community is used to repeating market cycles, and it remains possible that market leaders like Dogecoin will follow in XRP’s footsteps in 2021. If this XRP pattern is executed, Dogecoin price will sustain. It is subdued in the current bullish cycle. Specifically, Dogecoin price may face significant resistance at the 0.786 Fibonacci extension level located around $0.42.
Tony Severino’s analysis comparing two cryptocurrencies has sparked debate among many crypto participants. One participant, @WLitecoin, commented that this scenario is very plausible, pointing out that cryptocurrencies that perform very well in one cycle rarely repeat the same success in the next cycle. . They argue that many of the top buyers of the 2021 cycle are likely to act as resistance forces in the current cycle, creating downward pressure on Dogecoin prices.
Meanwhile, another commenter (@JVNTrade) believes that the two cryptocurrencies are very different. They say Dogecoin’s price movements will play out differently than XRP because of its ties to Donald Trump and Elon Musk.
At the time of writing, DOGE is trading at $0.135, up 10.82% in the past 24 hours. XRP is trading at $0.55, down 0.73% in the past 24 hours.
DOGE price above $0.13 |Source: DOGEUSDT on Tradingview.com
Featured image created by Dall.E, chart on Tradingview.com
