The relationship between Dogecoin and Bitcoin is about to take an interesting turn, as the DOGE/BTC trading pair flashes a technical pattern that has always preceded major rallies for the price of Dogecoin. According to a recent analysis shared by crypto analyst Trader Tardigrade on X, the latest drop in the DOGE/BTC pair may not be a bearish sign. Instead, it could be the start of something much bigger for DOGE.
DOGE/BTC Prints Lower Low Again
A notable pattern appears when examining the weekly candlestick timeframe price chart for Dogecoin. Before each of Dogecoin’s explosive price surges, the DOGE/BTC pair tends to slide lower to form new lows. At the same time, DOGE’s price in USD begins to trend upward. This divergence has been observed multiple times, most recently before the surges in early and late 2024, and it appears to be forming once again.
Trader Tardigrade’s chart illustrates this recurring structure in Dogecoin’s price behavior. The upper half of the chart highlights Dogecoin’s USD chart with multiple strong bullish moves. Interestingly, each pump is preceded by a distinct downtrend in the DOGE/BTC ratio displayed in the lower half of the chart.
The latest series of lower lows on the DOGE/BTC chart indicates that Bitcoin is currently outpacing Dogecoin in relative performance; however, if history is a determinant, the situation may change soon. If this pattern plays out again, the meme coin may be building momentum for a fresh upward phase that will finally push its price beyond notable resistance levels in the $0.20 range and toward multi-month highs. This outlook is also relayed by analyst Trader Tardigrade, who noted that the current setup suggests that “a massive pump is ahead.”
Price Target For Next Dogecoin Move
At the time of writing, Dogecoin is trading at approximately $0.1758, reflecting a decline of about 7.3% over the past 24 hours. The coin’s price has fluctuated between $0.1698 and $0.1921 during this period, with a 24-hour trading volume of $2 billion.
Bitcoin, on the other hand, is currently on a 1.4% decline in the past 24 hours. The leading cryptocurrency has fluctuated from an intraday high of $105,888 to as low as $100,783, before recovering slightly to $103,200 at the time of writing. Unsurprisingly, this wide range has also been reflected in the price of every other cryptocurrency around the board.
Notably, this recent 24-hour price action has caused Dogecoin to extend its recent low against Bitcoin, with the DOGE/BTC pair currently trading at 0.00000170.
If this lower low on the DOGE/BTC pair once again acts as a precursor to a price reversal, it could set the stage for another DOGE price breakout. Based on this setup, Trader Tardigrade projected a Dogecoin price rally to new all-time highs above $0.70.
Featured image from Getty Images, chart from Tradingview.com
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