Analysis of the challenges Dogecoin [DOGE] may face trying to break away from Bitcoin [BTC]
There is no hidden fact that Bitcoin [BTC]its dominance in the crypto market has a profound effect on other cryptocurrencies and their price movements. And stuck in a similar riddle is memecoin, Dogecoin [DOGE]which has been stuck after the king’s defined path. But with Bitcoin consolidated for over a month now, DOGE has found the right opportunity to escape.
Dogecoin on a different path
The correlation Dogecoin shared with Bitcoin at the time of writing fell to a low of 0.23, the lowest since May 2021. In a bull market, it is not certain that such a development is in the best interests of an altcoin.
Dogecoin’s correlation to Bitcoin | Source: Intotheblock – AMBCrypto
But given Bitcoin has not been able to move above $ 20k, it may be the best thing that can happen to Dogecoin.
Also earlier, every time DOGE’s correlation with BTC was at a low level, the active trend came to the place of the altcoin with a delay. For example, just as the June crash was about to begin, Bitcoin began to show signs of a fall in prices by June 8, while Dogecoin, despite the broader market’s bearish pressure, delayed the same by 48 hours, and began its decline June 10.
Bitcoin price action | Source: TradingView – AMBCrypto
Although it does not just come out of this every time, since disconnection from Bitcoin’s orbit will make Dogecoin vulnerable to volatility, something it has witnessed in recent days.
On the relative strength index (RSI) front, while Bitcoin charts a gradual rise, DOGE just missed the entrance to the bullish zone and instead fell below the bearish zone again. Its 14-month downward trend continues to work as resistance, testing that the meme coin fell 15.44% this week.
Dogecoin price action | Source: TradingView – AMBCrypto
Here, if it escapes Bitcoin’s trap disguised safety net for consolidation, Dogecoin could potentially decline again as the candlesticks are still below the base for Bollinger Bands.
Furthermore, it does not notice much support from investors either, which is how the market value has been at almost negative 60% for a little over a month now.
Dogecoin market value | Source: Santiment – AMBCrypto
DOGE will not give up
But the Dogecoin team does not give up and desperately tries to tease their community by dedicating themselves to the project in every way possible.
#Dogecoin is nothing without ours #DogeFam. We always need YOU. If you are a developer, a translator, a writer or a memer, come and join us! Also, be sure to follow along @dogecoin_devs and @DogecoinFdn for more ways to be a part of our decentralized journey to the moon!
– Dogecoin (@dogecoin) July 14, 2022
Not sure how much that would be helpful.
