Why The Dogecoin Price Could Outperform Bitcoin Again

Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. The cryptocurrency market has shown choppy and uneven momentum in the past week. Bitcoin’s price recently climbed to an eight-week highabove $97,000, but it has since retraced to trade around the low $90,000s.

Dogecoin’s movement has mirrored this mixed mood. A brief rally lifted it close to resistancearound $0.15 last week, but the meme coin has since slid back below$0.13, weighed down by profit-taking among investors.

Against this backdrop of consolidation and short-term corrections, technical analysis shared recently by a crypto analyst on X highlighted a setup in the BTC/DOGE cross-pair chart that shows Dogecoin is going to outperform Bitcoin if current technical patterns play out as expected. BTC vs DOGE: What the Technicals Suggest

Technical analysis of the BTCUSDT/DOGEUSDT chart shows the two crypto heavyweightstrading in an ascending channel that has repeatedly tested its upper boundary without a convincing breakout, a sign that the uptrend may be weakening. In technical trading frameworks, failure to sustain momentum at resistance often precedes a reversal.  Related Reading Dogecoin Price Is Following This Bullish Signal With A Major Target 3 days ago

In this case, the declining slope of recent attempts to push higher in the BTC/DOGE ratio indicates that Bitcoin may be losing relative strength to Dogecoin in the short term. As it stands, the BTC/DOGE pair looks like it is now rejecting at the upper boundary of this ascending channel, and the next move is a push downwards. Source: Chart from CantonMeow on X

This interpretation of the ratio doesn’t comment on the absolute price of both cryptocurrencies but only the performance comparison of the two assets. If the ratio breaks down below the channel’s lower trendline, then it could be interpreted as a signal that Dogecoin is gaining relative performance against Bitcoin, and this could cause crypto traders to reallocate capital into the relatively stronger asset. What Dogecoin Outperforming Bitcoin Might Look Like

Bitcoin’s price action over the past several days has been defined by volatility around the mid-$90,000 level. Easing inflation fears and the United States Supreme Court declining to rule on international trade tariffs helped lift BTC closeto $97,000 last week. However, the leading cryptocurrency is now back to trading around $93,030 at the time of writing. Related Reading Dogecoin RSI Just Entered Historical Oversold Levels Again, Will It Repeat 2021? 2 days ago

Meanwhile, Dogecoin’s trajectory has matched Bitcoin’s price action and the wider crypto market trend. DOGE faced rejection following spikes to resistance around $0.15, which prompted a slide back to $0.127, just below the $0.13 price level that has acted as a support in recent months.

If the technical prediction on the BTC/DOGE ratio unfolds as anticipated, the outperformance by Dogecoin against Bitcoin could play out in many ways. The outperformance could appear not necessarily as DOGE exploding upward in isolation, but also as DOGE holding stronger or falling less than Bitcoin during corrections. DOGE trading at $0.12 on the 1D chart | Source: DOGEUSDT on Tradingview.com Featured image from Getty Images, chart from Tradingview.com