Dogecoin mirrors Bitcoin: This high correlation means DOGE is now…

• Dogecoin is the altcoin with the highest correlation with Bitcoin in the last 30 days.
• DOGE has found its bottom near its 2023 highs, but there is a possibility of reaching the 2021 highs.

Dogecoin [DOGE] maintained a significantly high correlation with Bitcoin [BTC] at 0.92, suggesting that price movements often matched BTC’s, as IntoTheBlock’s correlation matrix highlighted.

The relationship suggests that DOGE usually follows Bitcoin price increases, which traders do not want to continue if BTC turns bearish.

Analyst Cryptollica noted in a recent broadcast that Dogecoin has been particularly successful in attracting new investors to the cryptocurrency market.

Source: IntoTheBlock

This attractiveness was supported by on-chain data showing growing interest from retail investors.

Despite differing opinions on Dogecoin’s influence, it undeniably played a positive role in wider cryptocurrency adoption and likely contributed to its upward momentum as Bitcoin rallied.

Dogecoin price prediction

On the weekly timeframe chart, DOGE/USDT showed that it has found its bottom near its 2023 highs, signaling the end of its previous bull run.

The positioning suggested a significant recovery as DOGE showed signs of returning to its 2021 highs.

With its recent uptrend, Dogecoin reflected a similar pattern seen in early bull runs, suggesting it may be just starting a new memecoin supercycle heading into 2025.

Source: Trading View

The current price action, which is above the significant Fibonacci retracement levels of the previous highs, suggests that Dogecoin could see significant gains.

If this momentum continues, Dogecoin could potentially regain its all-time highs and lead the memecoin rally.

Impact of the BTC.D peak on DOGE

Further analyzing Dogecoin’s next move in the context of its correlation with Bitcoin and the broader crypto market dynamics, DOGE has demonstrated resilience by establishing a base near its 2023 highs.

Despite Bitcoin’s dominance reaching 60% and subsequent fluctuations following Federal Reserve interest rate cuts, Dogecoin failed to mirror Bitcoin’s new highs in 2024.

However, historical patterns point to an upcoming memecoin season in 2025 that will potentially take Dogecoin to new heights.

Is your portfolio green? Check out the Dogecoin profit calculator

Following recent interest rate cuts, Bitcoin’s dominance briefly declined, which has historically benefited altcoin-to-Bitcoin pairs. If this pattern continues, Dogecoin could rally as the market adjusts to these macroeconomic changes.

As the year comes to a close and quantitative tightening may be complete, DOGE could benefit from market liquidity and investor sentiment. It could make strong gains from its 2021 highs and take part in the next memecoin cycle.