Dogecoin (DOGE) Price Rally to Continue as Bitcoin (BTC) Nears $100,000

Dogecoin price has performed well this month, reaching $0.4795, its highest level since May 2021, as the broader crypto rally gained momentum.

Dogecoin (DOGE) has had a remarkable month, surging to $0.4795—its highest level since May 2021—as the broader crypto rally gained steam.

After starting the week at around $0.40 on Nov. 28, the meme coin rallied by nearly 20% to hit a high of $0.4795 on Friday. This price action saw DOGE price clock a 365% increase from its September lows.

Interestingly, Dogecoin price movements mirrored those of Bitcoin (BTC), which also made a strong push toward the $100,000 mark to set a new record.

Moreover, Bitcoin price movements have historically influenced those of Dogecoin, with a correlation coefficient of 0.98 between the two, indicating similar price movements.

As such, there is a likelihood that Dogecoin price will continue its strong bull run when Bitcoin price crosses the $100,000 level.

In a recent Bitcoin analysis, we noted that technicals pointed to an eventual jump to $122,000. This view is based on the coin’s cup and handle pattern on the weekly chart.

As the name suggests, this pattern is made up of a rounded bottom followed by a pullback or a consolidation. Bitcoin's handle lasted from March to earlier this month when it made a bullish breakout to $99,7000.

Bitcoin also has some strong seasonal fundamentals since its price often rises in November and December. On top of this, Trump is said to be considering Paul Atkins, who is popular in the crypto industry to be the next head of the Securities and Exchange Commission.

Lastly, spot Bitcoin ETFs have also gained a lot of traction, with total assets now exceeding $101 billion, which is further boosting market confidence.

Dogecoin price rally to continue

Dogecoin's price appears poised for further gains if Bitcoin price climbs to $122,000 as projected.

On the weekly chart, Dogecoin has gone parabolic and crossed a critical resistance level at $0.2278, invalidating a previous double-top pattern.

The coin has also formed a golden cross pattern, where the 50-week and 200-week moving averages crossed, and has risen above the 50% Fibonacci Retracement level at $0.03715.

Moreover, Dogecoin is now forming a bullish flag or pennant pattern, which often precedes a strong breakout. If this occurs, the next target could be $0.7400, representing its all-time high, which would be an 85% gain from current levels.

However, a drop below $0.2278 would invalidate this bullish outlook.