Dogecoin's Fate Tied To Bitcoin, Says Crypto Analyst: 'Sit Back And Wait'

A popular cryptocurrency analyst cautioned Dogecoin DOGE/USD traders on Thursday not to overly focus on the cryptocurrency, as its movements are linked to what Bitcoin BTC/USD does.

What Happened: Kevin, known for sharing insights and forecasting price movements for the meme coin giant, stated, “My position is that DOGE is not in control of itself, and its fate lies purely in BTC’s hands at the moment. so overly focusing on the asset is sort of a waste of time.”

The analyst added that he was hopeful the ongoing cycle would head higher in the days ahead regardless of “short-term noises.” “Nothing else to do but sit back and wait if you’re a long-term holder who got in early like myself.”

Let's keep this is as simple as possible. #Dogecoin is currently trading between the macro golden pocket and the macro .5 Fib. These are two major areas of support and resistance and a break of either or will cause a cascading affect of aggressive movement. My position is that… pic.twitter.com/Au2jWhHwTS

— Kevin (@Kev_Capital_TA) December 12, 2024

Interestingly, Dogecoin had a 0.77 price correlation with Bitcoin, lower than Ethereum ETH/USD and Cardano ADA/USD, but higher than Shiba Inu SHIB/USD, according to IntoTheBlock.

For context, a correlation close to 1 implies a strong positive correlation between the two prices while a correlation near 0 suggests no correlation.

See Also: Trump-Linked World Liberty Financial’s Purchases Induce Searing Hot Rally In Aave And Chainlink

Why It Matters: Kevin’s remarks came at a time when the cryptocurrency market was experiencing significant volatility. DOGE retreated on Thursday, which, in turn, followed Bitcoin’s dip below $100,000.

Large transaction volumes jumped 41% in the past 24 hours, indicating a surge in whale activity, per IntoTheBlock data. Long-term holders were offloading DOGE, as evidenced by a 0.88% drop in balance held by addresses that had held the cryptocurrency for at least a year.

DOGE’s Open Interest, the total money locked in derivatives contracts, also fell by 0.83%. The number of traders placing downside bets trumped those speculating on price rises, as per the Long/Shorts Ratio.

Price Action:  At the time of writing, Dogecoin was exchanging hands at $0.4068, down 2.50% in the last 24 hours, according to data from Benzinga Pro.

Read Next: 

• Texas Mirrors Trump’s Vision, Introduces Bill To Set Up Bitcoin Reserve With 5-Year Holding Period

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.