Dogecoin has increased its volatility over the past 48 hours, with its price ranging from below the low of 0.157 to a brief peak of $0.185. Although this move is part of bullish interest In the wider crypto marketSince then, the Meme coins have dropped to $0.172 when writing. This price reversal Put Dogecoin in The unstable stance once again threatens to be below the 0.17 level level traders want to turn it into a new support base.
The sharp rise and equally keen backtrack are the latest examples of Doge’s unstable trading behavior, and comparisons are now being compared to another macro asset, Bitcoin’s performance against gold.
“Same Syndrome Syndrome”: Dogecoin follows the path of Bitcoin
chart Share on social media platforms X was proposed by Mike McGlone, senior analyst at Bloomberg Intelligence, to highlight the market cap trajectory of Dogecoin and the Bitcoin-to-Gold ratio. According to McGlone, the two assets have been moving in the same way for some time, showing what he calls “same track syndrome.”
In particular, the charts shared by analysts show that Dogecoin’s market cap and Bitcoin/Golden Cross magazine have been going on at the same time since December 2024. His analysis highlights how both assets respect the upward trend line over the past few months, but warns that such support may not last longer.
The similarity between Dogecoin’s chart and Bitcoin’s performance relative to McGlone’s gold signal, that bearish results may be imminent. The synchronous pattern between the two charts, both rising positively in 2024, then returning to the rising support line, suggesting that Doge may be entering a bearish cycle rather than a mature Bullish cycle. In particular, McGloben hopes that it will eventually violate the upward support trend line soon.
Recession concerns suggest gate caps could collapse significantly
As Mike McGlone predicts, violating the upward support trendline will surely crash Dogecoin’s market cap. This is inconsistent with the general sentiment between analysts Predicting a bigger gathering For Doge before the end of the year.
However, McGlone does not have a bearish Governor’s prediction based solely on price action. In his post, he linked the predictive breakdown of Dogecoin and Bitcoin/Gold to broader macroeconomic developments, especially the possibility of delayed recession.
It is worth noting that the support line that makes Dogecoin’s market capitalization is currently about $22 billion, which makes this an important monitoring level. At the time of writing, Doge is trading at $0.1720 and has a market capitalization of $25.63 billion. Based on the current revolving supply of $148.9 billion, if the price drops to $0.147, Dogecoin’s market cap will be below $22 billion.
Featured images from Shutterstock, charts from TradingView.com
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