A crypto analyst is making waves on social media, suggesting that Dogecoin’s price might mirror XRP’s performance during the last bull market. This could mean bad news for Dogecoin holders.
A Tale of Two Cryptos
The analyst, Tony “The Bull” Severino, noticed a striking similarity between the price charts of XRP and Dogecoin. Both cryptos saw a significant rise during their respective bull runs, but both also faced resistance at a key Fibonacci level.
XRP, despite being a top cryptocurrency, struggled to break past its previous all-time high during the 2021 bull market. It hit a peak of $1.95 but then faced resistance at the 0.786 Fibonacci extension level. This prevented it from reaching its 2018 high of $3.84.
Dogecoin, according to Severino, is following a similar pattern. Its price recently hit the 0.5 Fibonacci extension level and was rejected.
What This Could Mean for Dogecoin
If history repeats itself, Dogecoin could face significant resistance at the 0.786 Fibonacci extension level, which is around $0.42. This could keep its price suppressed throughout the current bull cycle.
The Crypto Community Weighs In
The crypto community is divided on this prediction. Some agree that it’s plausible, as it’s rare for a cryptocurrency to repeat its previous cycle success. They believe that the top buyers from the 2021 cycle might act as resistance and push Dogecoin’s price down.
Others argue that Dogecoin is different from XRP, citing its ties to Donald Trump and Elon Musk. They believe its price action will be unique.
The Bottom Line
Only time will tell if Dogecoin will follow XRP’s path. For now, it’s worth keeping an eye on its price action and seeing if it breaks through the 0.786 Fibonacci level.
