A prominent crypto analyst has sparked a thought-provoking debate on social media platform X, suggesting that the Dogecoin price may mirror XRP’s performance during the previous bull market.
While most major cryptocurrencies surged to new all-time highs in the 2021 bull run, XRP struggled to break past its previous peak. Now, crypto analyst Tony “The Bull” Severino has drawn a comparison to Dogecoin displaying similar price action, noting the question of what if Dogecoin “pulls an XRP this cycle?”
Drawing Parallels Between XRP And Dogecoin Price
According to a technical analysis of the XRP and Dogecoin price charts Tony shared on social media platform X, Dogecoin’s price action in the past few years closely mirrors that of XRP’s price years back. Despite being one of the top cryptocurrencies by market cap, XRP faced unique challenges that slowed down its surge alongside Bitcoin and Ethereum during the last bull run.
Although XRP saw a notable price increase and peaked at $1.95, it faced resistance at the 0.786 Fib extension from its 2020 low. As such, the XRP price failed to break above its 2018 all-time high of $3.84 before the 2022 bear market, much to the disappointment of many bullish proponents. Since then, XRP has largely traded between $0.7 and $0.5 without any sustained upward momentum needed to reclaim its former highs.
The analyst further highlighted the Dogecoin price action using a monthly candlestick chart for the DOGE/USD pair. He noted that Dogecoin’s price was recently rejected at the 0.5 Fibonacci extension level from its 2022 low, a pattern that closely mirrors XRP’s performance, where the price was similarly repelled at the 0.5 Fibonacci extension from its 2020 low.
What Does This Mean For DOGE?
The crypto community is no stranger to the repeat of market cycles, and there remains the potential for a market leader like Dogecoin to follow in the footsteps of XRP in 2021. If this XRP pattern were to play out, it would keep the price of Dogecoin suppressed in the current bull cycle. Specifically, the Dogecoin price could face significant resistance at the 0.786 Fibonacci extension level, located near $0.42.
Tony Severino’s analysis comparing the two cryptocurrencies has sparked discussions among many crypto participants. One participant, @WLitecoin, commented that this scenario is highly plausible, pointing out that it is rare for a cryptocurrency that performed exceptionally well in one cycle to repeat that success in the next. They argue that many of the top buyers from the 2021 cycle are likely to act as resistance during the current cycle and create downward pressure on the Dogecoin price.
On the other hand, another commenter (@JVNTrade) believes the two cryptocurrencies are very different. According to them, Dogecoin has ties to Donald Trump and Elon Musk, so its price action will play out differently from XRP.
At the time of writing, DOGE is trading at $0.135 and has increased by 10.82% in the past 24 hours. XRP is trading at $0.55 and has decreased by 0.73% in the past 24 hours.
Featured image created with Dall.E, chart from Tradingview.com
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