A well-known cryptocurrency analyst has ignited a compelling discussion on social media platform X, proposing that Dogecoin’s price may reflect the trajectory of XRP during the previous bull market.
While the majority of major cryptocurrencies experienced significant gains reaching new all-time highs in the 2021 bull market, XRP had difficulty surpassing its former peak. Crypto analyst Tony “The Bull” Severino has compared this situation to Dogecoin showing similar price movement, questioning what might happen if Dogecoin were to “repeat XRP’s journey this cycle?”
Exploring Comparisons Between XRP And Dogecoin Prices
Based on a technical comparison of the price charts of XRP and Dogecoin that Tony shared on social media platform X, it appears that Dogecoin’s price movements over recent years closely resemble those of XRP in the past. Even as one of the leading cryptocurrencies by market cap, XRP encountered distinct obstacles that hindered its rise alongside Bitcoin and Ethereum in the previous bull market.
While XRP experienced a substantial price uptick, reaching a peak of $1.95, it struggled against resistance at the 0.786 Fibonacci extension from its 2020 low. Consequently, XRP failed to exceed its 2018 all-time high of $3.84 before the onset of the 2022 bear market, disappointing many optimistic supporters. Since then, XRP has largely fluctuated between $0.7 and $0.5, lacking the sustained upward momentum necessary to reclaim its former highs.
The analyst emphasized Dogecoin’s price action through a monthly candlestick chart for the DOGE/USD pair. He pointed out that Dogecoin’s price was recently rejected at the 0.5 Fibonacci extension level from its 2022 low, mimicking XRP’s performance, where it also faced a similar rejection at the 0.5 Fibonacci extension from its 2020 low.
What Implications Does This Hold For DOGE?
The crypto community is accustomed to the recurrence of market cycles, and there exists the possibility for a significant player like Dogecoin to emulate XRP’s trajectory in 2021. Should this XRP pattern manifest, it could keep Dogecoin’s price confined during the current bull cycle. Specifically, the price of Dogecoin may encounter substantial resistance at the 0.786 Fibonacci extension level around $0.42.
Tony Severino’s comparative analysis of the two cryptocurrencies has stirred conversation among many participants in the crypto space. One user, @WLitecoin, remarked that such a scenario is quite plausible, noting the rarity of a cryptocurrency that excelled in one cycle achieving similar success in the following one. They posit that many key investors from the 2021 cycle are likely to create resistance and apply downward pressure on Dogecoin’s price during the current cycle.
Conversely, another commenter (@JVNTrade) asserts that the two cryptocurrencies are fundamentally different. They suggest that Dogecoin has connections to Donald Trump and Elon Musk, indicating that its price action will unfold in a different manner from XRP.
As of this writing, DOGE is trading at $0.135, having risen by 10.82% in the last 24 hours. XRP is priced at $0.55, reflecting a decrease of 0.73% in the past 24 hours.
Featured image created with Dall.E, chart from Tradingview.com
