[ad_1]
Despite its notable gains throughout this year, the Dogecoin price has yet to break above its all-time high in 2021, but analysts continue to remain bullish. Interestingly, recent analyses from crypto analysts have compared the Dogecoin price action to that of the XRP price rally, with the general consensus being new all-time highs for both cryptocurrencies in the coming months. A notable observation by crypto analyst, ProfessorAstrones, has added intrigue to this discussion, as he links XRP’s market movements to a rally in Dogecoin’s price.
Dogecoin Price Action Mirrors XRP’s Rally Dynamics
ProfessorAstrones, a pseudonymous crypto analyst, shared his perspective on social media platform X, noting that XRP’s market liquidity could flow into Dogecoin and drive its price to new heights. According to the DOGEUSDT 4-hour chart that accompanied his analysis, Dogecoin’s current price movement is defined by a tightening range formed by a descending trendline and an ascending trendline. Interestingly, this chart structure resembles that of the flag of a bullish pennant, which often signifies an upward breakout is close.
According to him, the Dogecoin price is still on track to reach a closer target of $1 and long-term targets of $3 and $5 by 2025. All these are bullish targets, and attaining even the $1 would necessitate a break above the current all-time high of $0.7316. Interestingly, his Dogecoin price outlook is also based off of a projection rotation of liquidity in the crypto market.
Specifically, he predicted a scenario where capital that has fueled XRP’s price rally will eventually flow into Dogecoin. “$XRP money will flow into $DOGE,” the analyst said.
What this basically means is that as XRP investors start taking profits, their focus may pivot toward Dogecoin, which, like XRP, is one of the most popular cryptocurrencies among retail investors.
Interestingly, this outlook of money rotation between XRP and Dogecoin is supported by other crypto analysts. One such voice is @CryptoGodJohn, who expressed a similar view on social media platform X. According to his own outlook, he anticipates that money will flow into Dogecoin once XRP reaches a local price peak in this market cycle.
Parallels Between Dogecoin and XRP Charts
Jacob Canfield, another popular crypto analyst, shared his thoughts on the price similarities between Dogecoin and XRP, highlighting the classic trading structure of both assets. He observed that the Dogecoin price has been forming higher lows while successfully turning previous resistance levels into support, much like XRP on the lower time frames.
At the time of writing, Dogecoin is trading at $0.441 and is up by 5% in the past 24 hours. XRP, on the other hand, is currently trading at 2.37, having declined by about 10% in the past 24 hours. Whether there will be a liquidity rotation between XRP and Dogecoin in the current bull cycle remains to be seen.
Featured image created with Dall.E, chart from Tradingview.com
[ad_2]
Source link
