Dogecoin (CRYPTO: DOGE) has gained 28% over the past week, prompting traders to forecast a bullish run if Bitcoin (CRYPTO: BTC) breaks out.
What Happened: In a recent podcast update, crypto traders DonAlt and CryptoCred linked the performance of altcoins, particularly Dogecoin, to Bitcoin's potential breakout.
DonAlt revealed that he continues to hold Dogecoin, targeting prices between $0.50 and $0.80 if Bitcoin experiences a major move, drawing comparisons to XRP's dramatic rise in 2017. He also assigns a $1.50-$2.00 price target for the meme coin.
Both traders expect Bitcoin to rise to $80,000-$100,000, despite the market structure not yet confirming a breakout. DonAlt emphasized the importance of the $64,300 support level and believes closing above $68,000-$69,000 would solidify a bullish trend, with a potential pullback to $60,000 after the breakout.
DonAlt also highlighted Dogecoin's recent strong performance in a tweet.
Every day I wake up to more green
— DonAlt (@CryptoDonAlt) October 21, 2024
I could get used to this pic.twitter.com/uJbwQeWsWr
Also Read: Bitcoin Enables 'Saving Without Corporate Or Government Exploitation,' Says Industry Expert
Why It Matters: Crypto trader Kevin pointed out that Dogecoin's money flow indicator has turned green for only the third time in its history, with previous instances in March 2021 and November 2017. Both occurrences were followed by major price increases. The green money flow suggests that more capital is flowing into Dogecoin, signaling bullish momentum.
For the unfamiliar, money flow is a key indicator used by investors to predict future price movements. A green money flow suggests more money is flowing into the asset than out, often indicating bullish sentiment.
IntoTheBlock shows Dogecoin's hodlers balance widened by 27.3% while exchange netflows have increased by 16.5%. At current levels, 80% of Dogecoin holders are in profit.
What's Next: The influence of meme coins is expected to be thoroughly explored at Benzinga's upcoming Future of Digital Assets event on Nov. 19.
- Dogecoin's On-Chain Data, Chart Patterns Flash Bullish Signals: This Top Analyst Thinks It's A 'Buy'
Image: Shutterstock
