[ad_1]
Historical charts reveal a decade-long fractal correlation between Dogecoin (DOGE) and Ripple (XRP) price trends. Following XRP’s recent 80% price jump, on-chain data analysis suggests that DOGE could once again head in the same direction.
Ripple (XRP) has outperformed Dogecoin (DOGE) and nearly every other coin in the top 10 crypto ranking over the past week. Although Dogecoin has recently 3% retraced, dropping below the critical $0.070 support level, historical trends suggest that DOGE bulls could seize control at any moment.
There’s a Historical Price Correlation Between DOGE and XRP
Dogecoin and XRP have displayed a conspicuous fractal correlation over the last 9 years. The Tradingview chart below shows that, albeit at different intensities, DOGE and XRP have often trended in the same direction.
Coined in 1975 by the mathematician Benoît Mandelbrot, a Fractal is a phenomenon that occurs when the short-term changes in seemingly unrelated variables repeatedly form similar trend patterns over a long period.
As seen above, the small movements in the price of Dogecoin and XRP have repeatedly formed similar patterns between 2014 and 2023.
If history repeats itself, DOGE could break out of its current 3% downtrend and head toward $0.08 in the coming weeks.
Long-Term Dogecoin Investors Are Holding Firm
Furthermore, the bullish disposition among Dogecoin’s long-term holders currently supports the fractal’s validity. According to Santiment, DOGE Mean Coin Age has been trending upward since July.
Evidently so, between July 1 and July 17, Dogecoin Mean Coin Age increased by 22% from 55,151 to about 63,131.
Mean Coin Age gauges the level of trading sentiment among long-term investors. It is derived by computing the average number of days that coins in circulation have spent in their current wallet addresses.
When it rises progressively, as seen above, it signals that long-term investors are looking to hold out for future gains.
In conclusion, if more investors buy into the Dogecoin XRP correction, the long-term holders will likely continue doubling their positions. Hence, this week, the DOGE price could be one to watch in the memecoin sector.
DOGE Price Prediction: $0.08 in Focus?
Considering XRP’s double-digit gains over the past week, DOGE must retest the $0.08 range to keep the 9-year trend correlation going.
However, the bulls currently face a major obstacle around the $0.078 range. At that zone, 600,000 investors had bought 40.22 billion Dogecoin at an average price of $0.078. They could invalidate the DOGE, XRP price correlation trend if they chose to book profits.
But if the bulls can surmount that obstacle, DOGE could head toward $0.082 as predicted.
Still, the bears could summarily invalidate the fractal if DOGE manages to force a downsizing below $0.060. However, the 266,290 investors that bought 4.92 billion Dogecoin at the average price of $0.059 will look to prevent the drop.
Although unlikely, failure to hold that support level could see DOGE drop toward $0.055.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.
[ad_2]
Source link
