Dogecoin’s price has been all over the place lately. It bounced around quite a bit, spiking briefly before dropping back down. This has some people worried.
Dogecoin’s Erratic Behavior
This up-and-down action is nothing new for Dogecoin. It’s known for its unpredictable price swings. Now, a Bloomberg analyst is drawing comparisons to Bitcoin’s performance against gold.
Following Bitcoin’s Lead?
Bloomberg Intelligence’s Mike McGlone shared a chart showing a striking similarity between Dogecoin’s market cap and the Bitcoin-to-gold price ratio. He calls it “same-chart syndrome.” Both have followed a similar upward trend since December 2024, but McGlone thinks this trend might be ending soon.
A Bearish Outlook
McGlone believes this similarity suggests Dogecoin might be heading for a downturn, not a big rally. He predicts the current upward trendline will break soon, leading to a market cap crash.
Recession Fears Add to the Gloom
McGlone isn’t just looking at the charts. He’s also considering the broader economic picture, specifically the possibility of a US recession. He thinks this could significantly impact Dogecoin’s price.
The Key Level to Watch
The crucial support level for Dogecoin’s market cap is around $22 billion. If it falls below that, expect a significant drop in price. Currently, Dogecoin is trading at $0.1720 with a market cap of $25.63 billion. A drop to $0.147 would push it below that $22 billion mark.