Is Dogecoin About To Repeat NVIDIA’s Run? Here’s What The Chart Says

Source Newsbtc

Comparing Dogecoin to NVIDIA may seem illogical at first. One is a speculative digital asset rooted in internet culture, while the other is a leading equity in the AI and tech sector. However, a chart shared by cycle analyst @Cryptollica reframes the comparison by stripping away narrative and focusing on capital flows. Rather than asking which story is more compelling, it examines how money has historically rotated between established market leaders and high‑risk assets as cycles mature.

What The Dogecoin—NVIDIA Chart Is Showing Investors

The chart posted by Cryptollica tracks the DOGE-to-NVIDIA ratio across multiple market cycles, emphasizing relative performance rather than absolute price. This perspective matters because it highlights where capital has generated the highest marginal returns over time. Historically, the ratio has moved within a clearly defined downward channel, with major turning points occurring when the price reaches the lower boundary of that structure.

During both the 2017 and 2021 cycles, the ratio compressed into this same support area. In each case, NVIDIA had already realized significant upside, while Dogecoin remained heavily discounted in relative terms. What followed was not a breakdown in NVIDIA’s price, but a period where Dogecoin significantly outperformed as speculative capital rotated back into higher-risk opportunities.

The current structure mirrors those earlier conditions. The ratio is again testing long-term support, signaling a familiar imbalance: extended gains already priced into NVIDIA, and suppressed relative value in Dogecoin. In previous cycles, this setup preceded sharp shifts in relative performance as liquidity began favoring assets with greater upside sensitivity.

What A Rotation Environment Means For Dogecoin

The pattern highlighted by the chart centers on rotation rather than decline. When leading trades lose momentum, capital typically stays within the market and seeks higher beta exposure. Historically, Dogecoin has benefited during these transitions, serving as a vehicle for speculative flows once dominant growth assets reached saturation.

Dogecoin price

This does not imply weakness in NVIDIA’s underlying fundamentals. Its valuation remains tied to sustained AI-driven growth expectations. Dogecoin, however, operates under a different dynamic, driven largely by sentiment and liquidity conditions. When markets move from concentration into dispersion, assets like DOGE have previously delivered outsized percentage gains.

The chart suggests that a similar environment may be forming again. At comparable points in past cycles, Dogecoin outperformed after NVIDIA-like leaders had already completed their primary expansion phase. If the ratio holds its historical support, the data points to a renewed window where DOGE could outperform on a relative basis.

Rather than predicting hype-driven rallies, the chart highlights a recurring structural relationship between capital leaders and speculative assets. Whether the pattern repeats will depend on liquidity and risk appetite, but the setup reflects a consistent historical behavior that has appeared more than once across market cycles.

Dogecoin price chart from Tradingview.com
Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Ethereum (ETH) Price Closes Above $3,900 — Is a New All-Time High Possible Before 2024 Ends?Once again, the price of Ethereum (ETH) has risen above $3,900. This bounce has hinted at a further price increase for the altcoin before the end of the year.
Author  Beincrypto
Dec 17, 2024
Once again, the price of Ethereum (ETH) has risen above $3,900. This bounce has hinted at a further price increase for the altcoin before the end of the year.
placeholder
Analyst Flags XRP as Market’s ‘Best Risk/Reward’ Play as Token Tests Critical $1.60 SupportCrypto analyst Scott Melker identifies a prime risk/reward setup for XRP as it tests key support at $1.60, offering a tight stop-loss against potential upside targets near $2.00.
Author  Mitrade
Feb 03, Tue
Crypto analyst Scott Melker identifies a prime risk/reward setup for XRP as it tests key support at $1.60, offering a tight stop-loss against potential upside targets near $2.00.
placeholder
Ethereum Price Forecast: ETH faces heavy distribution as price slips below average cost basis of investorsEthereum (ETH) extended its decline on Wednesday, dropping more than 5% over the past 24 hours toward the $2,100 level, which is below the $2,310 average cost basis or realized price of investors, according to CryptoQuant's data.
Author  FXStreet
Feb 05, Thu
Ethereum (ETH) extended its decline on Wednesday, dropping more than 5% over the past 24 hours toward the $2,100 level, which is below the $2,310 average cost basis or realized price of investors, according to CryptoQuant's data.
placeholder
Bitcoin Drops to $70,000. U.S. Government Refuses to Bail Out Market, End of Bull Market or Golden Pit? The U.S. government refuses to bail out Bitcoin, and with Fed rate cuts nowhere in sight, a continued downward trend to test for a bottom is likely after a brief rebound.During the mid-da
Author  TradingKey
Feb 05, Thu
The U.S. government refuses to bail out Bitcoin, and with Fed rate cuts nowhere in sight, a continued downward trend to test for a bottom is likely after a brief rebound.During the mid-da
placeholder
Bitcoin Surrenders $65,000 as Analysts Warn of ‘Structural’ Market BreakBitcoin plunges 11% to break $65k as analysts term the crash "structural," citing a $1 trillion market wipeout and $2.09 billion in daily liquidations.
Author  Mitrade
Feb 06, Fri
Bitcoin plunges 11% to break $65k as analysts term the crash "structural," citing a $1 trillion market wipeout and $2.09 billion in daily liquidations.
goTop
quote