An analyst, CrediBULL Crypto has just predicted a critical juncture for Dogecoin and Solana, with a possible rebound or crashes.
The analyst says that both altcoins heavily rely on Bitcoin's price movements, with a correlation of more than 92% for Solana.
A Bitcoin price reversal could help Dogecoin and Solana to regain investor confidence.
Solana maintaining a price between $141 and $147 might be crucial to avoid new lows.
Dogecoin, on the other hand, might be at risk of a possible drop to $0.12, before a price recovery.
The crypto market is both volatile and stagnant at the same time, entering flash rallies before crashing down again only shortly after.
However, this trend might mostly be due to certain cryptocurrencies being in “make it or break it phases”, where their prices have reached the lowest supports in which either massive rallies or massive dumps can occur.
Two cryptocurrencies, in particular, are in phases like these, including Dogecoin and Solana.
And according to recent insights from analyst, CrediBull Crypto, we might be seeing extremes of either bullish or bearish price action on these two very soon.
According to a recent tweet from the analyst, both DOGE and SOL have arrived at what he calls “make it or break it levels.”, where these assets must either rally to prove that the bulls are still present and in control, or risk crashing hard and having most of their investors jump ship.
In essence, a massive rebound might be forthcoming for these cryptocurrencies, as we will soon see.
CrediBull Crypto opines that the fate of several altcoins across the market depends heavily on Bitcoin with Dogecoin and Solana being prime examples.
And he isn’t wrong.
Data from Trafis shows that Solana and Bitcoin currently have a correlation of more than 92% on the monthly timeframe, which has been increasing steadily this year.
Moreover, in the last 12 months, the correlation between the two assets has increased by 38%, after peaking in May 2024 from lows in November 2023.
Solana's Correlation to Bitcoin
PortfoliosLab data also shows a more than-average correlation between the price actions of Bitcoin and Dogecoin, indicating that both of these assets might be more influenced by Bitcoin than other altcoins.
The analyst also opined that if Bitcoin were to enter a price reversal from the current price reversal to the upside, Dogecoin and Solana would be likely to follow suit, allowing them to regain investor confidence.
The analyst also shared charts showing Solana’s price action between April to August 2024 in another earlier tweet.
In this tweet, Credibull Crypto opined that if Solana can maintain its value within the “green zone” shown below—which, by the way, is between $141 and $147—it could reach new highs before the bears have a chance to catch up.
He further opined that if Solana succeeds at breaking the $200 zone once again, investors might want to consider taking profits before we see a possible retest of new lows at around $115.
Overall, the key takeaway from CrediBull Crypto’s outlook is that the outlooks for Dogecoin and Solana are highly dependent on the price action of Bitcoin, which currently trades at around $67,400 at the time of writing.
Dogecoin hangs above a drop
We also have Dogecoin hanging over a possible drop to $0.12 as shown in the chart above, and is likely held up by Bitcoin’s stability above $67,000.
If we see a Bitcoin price recovery from here, Dogecoin might rebound from here and attempt to retake $0.2, depending on Bitcoin’s price performance.
However, if we see Bitcoin lose the $67,000 mark, the resulting crash might take Dogecoin down to $0.12, before we see any kind of recovery.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.