Dogecoin, the meme-inspired cryptocurrency, has recently shown signs of underperformance in the current bull cycle. This situation has drawn comparisons to XRP’s challenges during its 2021 market phase, highlighting the volatility and unpredictability of the cryptocurrency market.
Recent Performance of Dogecoin
After a strong start following the 2022 crypto winter, Dogecoin experienced substantial gains. These gains were driven by endorsements from prominent figures and the political climate surrounding a major election. However, as 2025 progressed, the largest meme coin by market capitalization faced a significant correction.
Dogecoin has retraced over 32% since the beginning of the year, with only Avalanche (AVAX) performing worse among the top 15 cryptocurrencies. This downturn has prompted analysts to investigate the relationship between Dogecoin’s current difficulties and XRP’s past performance during a challenging regulatory period.
XRP’s Historical Challenges
In late 2020, XRP encountered a lawsuit from the U.S. Securities and Exchange Commission (SEC), which severely hindered its market momentum. Despite a broader bullish trend in the cryptocurrency sector, this legal issue resulted in XRP achieving only a 276% increase in 2021. This is a stark contrast to its explosive 30,452% surge during the 2017 bull market.
During this cycle, XRP peaked at $1.9839, a level it has not surpassed since. Analysts have drawn parallels between XRP’s struggles and Dogecoin’s current market performance, suggesting that Dogecoin may be following a similar trajectory.
Analyst Insights on Dogecoin
Analyst Tony “The Bull” Severino has suggested that Dogecoin may be mirroring XRP’s performance in this cycle. His analysis indicates a strong correlation between the price movements of both cryptocurrencies. Severino first proposed this theory in October, prior to a significant market rally, and has since observed that the price actions of both assets are converging.
In 2021, XRP struggled to maintain trading above the 0.786 Fibonacci extension level at $1.604, experiencing a 35% correction shortly after nearing this threshold. Similarly, Dogecoin’s price surged by 160% in November, reaching the 0.786 Fibonacci level at $0.4198, before peaking at $0.4846 in December.
Current Market Predictions
Despite the bearish outlook suggested by the correlation with XRP, not all analysts share this sentiment. Market watcher Trader Tardigrade has predicted an imminent rebound for Dogecoin, forecasting a rise to $0.229 based on the formation of a dragonfly doji pattern. This technical analysis suggests that a reversal may be on the horizon, potentially leading to further price increases.
Tardigrade’s optimism extends beyond short-term predictions, as he posits that the mean reversion theory could propel Dogecoin’s price to as high as $10. This represents a staggering 4,619% increase from its current market price of $0.2109. This bullish perspective is further supported by growing institutional interest in Dogecoin, with asset managers recently filing for a Dogecoin ETF.
Conclusion
As Dogecoin navigates its current market challenges, the interplay between technical analysis, institutional interest, and historical performance will be crucial in determining its future trajectory. The cryptocurrency landscape remains volatile, and while some analysts predict a downturn, others see potential for significant gains.
The coming months will be pivotal for Dogecoin as it seeks to establish its position in a rapidly evolving market. Investors and analysts alike will be watching closely to see how these factors play out in the near future.
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