Meme coin leader Dogecoin DOGE/USD has attracted the attention of crypto analysts predicting imminent price discovery.
What Happened: Cryptocurrency analyst Zer0 shared his insights about the behavior of Dogecoin during Bitcoin BTC/USD price discovery phases, noting that Dogecoin tends to stabilize around 80% below its previous all-time high during these periods. It is currently down 77% down from its May 2021 all-time high level.
"Study what happens with DOGE when BTC goes into Price Discovery…will start ripping once Bitcoin spreads its wings," Zer0 stated.
The trader referenced the 2017 cycle, 2021 cycle and current cycle as examples, with charts showing DOGE rallies at the same time as BTC does.
One trader reacted by saying he is currently is "sitting in spot" and curious to observe the breakout.
Why It Matters: Zer0’s tweet provides a historical perspective on Dogecoin’s price movements in relation to Bitcoin’s market behavior, suggesting a potential strategy for investors to consider during future Bitcoin price discovery phases.
Bitcoin’s price discovery phases often lead to significant market movements, impacting various cryptocurrencies. By analyzing past cycles, investors can better anticipate potential trends and adjust their strategies accordingly.
IntoTheBlock data shows large transaction volume expanding by 5.7%, while transactions greater than $100,000 dropped marginally from 297 transactions on June 3 to 263 on June 4. Exchange net flows plunged 1,847.2% in a single day.
Price Action: In the past 24 hours, DOGE is trading 1.6% higher at $0.1639.
What’s Next: The influence of meme coins and Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
Read Next: Dogecoin’s 23% Monthly Gains Steels Trader’s ‘Insanely High Conviction’ DOGE Will Outpace Bitcoin
Image: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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