Analyzing The Challenges Dogecoin [doge] May Face Trying Break Free From Bitcoin [btc]

It’s no hidden undeniable fact that Bitcoin [BTC]’s dominance within the crypto market has a profound impact on different cryptocurrencies and their value actions. And caught in an analogous conundrum is the memecoin, Dogecoin [DOGE], which has been caught following the king coin’s outlined trajectory. However with Bitcoin consolidating for over a month now, DOGE has discovered the suitable alternative to flee.

Dogecoin on a unique path

The correlation Dogecoin shared with Bitcoin on the time of writing fell to a low of 0.23, the bottom since Might 2021. In a bull market, such improvement might not be in the most effective pursuits of an altcoin.

Dogecoin’s correlation to Bitcoin | Supply: Intotheblock – AMBCrypto

Nevertheless, given Bitcoin has been unable to maneuver past $20k, it may be the most effective factor to occur for Dogecoin.

Prior to now as properly, each time DOGE’s correlation with BTC was at a low, the lively development arrived the place of the altcoin with a delay. As an example, proper because the June crash was about to start, Bitcoin started exhibiting indicators of a value fall by 8 June itself, whereas Dogecoin, regardless of the broader market’s bearish stress, delayed the identical by 48 hours, starting its descent on 10 June.

Bitcoin value motion | Supply: TradingView – AMBCrypto

Though solely good gained’t come out of this each time since decoupling from Bitcoin’s trajectory will depart Dogecoin weak to volatility, which is strictly what it has been witnessing over the previous few days.

On the Relative Power Index (RSI) entrance, whereas Bitcoin is charting a gradual incline, DOGE simply missed the entry into the bullish zone and as an alternative fell beneath to bearish zone, once more. Its 14-month-long downtrend continues to behave as resistance, testing which the meme coin fell by 15.44% this week.

Dogecoin value motion | Supply: TradingView – AMBCrypto

Right here on, if it does escape Bitcoin’s lure disguised security internet of consolidation, Dogecoin might doubtlessly decline once more because the candlesticks are nonetheless beneath the premise of the Bollinger Bands.

Moreover, it isn’t noting a lot help from the buyers both, which is how its market worth has been sitting at nearly destructive 60% for a bit over a month now.

Dogecoin market worth | Supply: Santiment – AMBCrypto

DOGE gained’t surrender

However the Dogecoin group isn’t giving up and is desperately attempting to rile up its group by dedicating themselves to the mission in no matter methods one can. 

Unsure how a lot that might be of assist.

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