A popular Cryptocurrency analyst warned traders of Dogecoin (CRYPTO:DOGE) on Thursday not to focus too much on the cryptocurrency, as its movements are linked to what it does Bitcoin (CRYPTO:BTC).
What happened
Kevinknown for sharing information and forecasting price movements for the cryptocurrency, stated: “My position is that DOGE does not control itself and its fate lies purely in the hands of BTC at this time, so focusing excessively on the asset is “a waste of time.”
The analyst added that he was confident that the ongoing cycle would tilt higher in the coming days, regardless of the “short-term noise.” “There’s nothing more to do than sit and wait if you’re a long-term investor who got in early, like me.”
Let’s keep this as simple as possible. #Dogecoin is currently trading between the macro golden pocket and the macro .5 Fib. These are two major areas of support and resistance and a break of either or will cause a cascading affect of aggressive movement. My position is that… pic.twitter.com/Au2jWhHwTS
— Kevin (@Kev_Capital_TA) December 12, 2024
It is interesting to note that Dogecoin had a price correlation of 0.77 with Bitcoin, lower than that of Ethereum (CRYPTO:ETH) and Cardano (CRYPTO:ADA), but higher than that of Shiba Inu (CRYPTO:SHIB), according to IntoTheBlock.
To understand it, a correlation close to 1 implies a strong positive correlation between the two prices, while a correlation close to 0 indicates no correlation at all.
Why is it important
Kevin’s statements came at a time when the cryptocurrency market was experiencing significant volatility. DOGE retreated on Thursday, which in turn followed Bitcoin’s drop below $100,000.
Large-scale transaction volumes increased by 41% in the last 24 hours, indicating an uptick in whale activity, according to data from IntoTheBlock. Long-term investors released DOGE ballast, evidenced by a 0.88% drop in the balance held by addresses that have held the cryptocurrency for at least a year.
DOGE open interest, the total money locked in derivatives contracts, also fell 0.83%. The number of traders placing bearish bets exceeded those speculating on price increases, according to the Long/Shorts Ratio.
Dogecoin price movement
At the time of writing, Dogecoin was trading at $0.4059, down 2.75% over the past 24 hours, according to data from Benzinga Pro.
Photo courtesy of Shutterstock
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