Decoupling from Bitcoin [BTC] – Will it be good or bad for DOGE, its owners

As the broader market continues its recovery, companies like Dogecoin are also seeing some growth on the charts. However, growth was by no means uniform across the board. In fact, some might argue that Bitcoin’s appreciation has been slower than most. Ergo, perhaps separating his path from Bitcoin could speak in favor of Dogecoin.

Dogecoin will not follow Bitcoin?

Most likely. The correlation between the two assets was lowest on July 13, just after the market wiped out all of the upside the altcoin had seen for the month.

However, at the time of writing, that correlation appeared to be rising again, with the same 0.62 numbers blinking.

Dogecoin Correlation to Bitcoin | Source: Intotheblock – AMBCrypto

This would bring DOGE back into Bitcoin’s allegiance, which may not bode well for investors. This is because Dogecoin is currently on the cusp of a rally that may never happen if it follows Bitcoin.

First off, Bitcoin’s growth has been slow compared to other coins and good enough on its own. The buying pressure on the coin has increased immensely over the weeks and the king coin is currently closer to saturation than many other cryptocurrencies.

This means Bitcoin has just a few days of rally left before it becomes overbought and the trend reverses.

Bitcoin Price Action | Source: TradingView – AMBCrypto

Dogecoin, on the other hand, still has plenty of room for a rally. Also, according to the indicators, it is just about capable of doing this.

It has already managed to break the 15-month downtrend and closed above it for only the third time. This is a positive signal in itself, but more than that, DOGE has also recaptured the 50-day Simple Moving Average (SMA) as support after almost three months.

Dogecoin Price Action | Source: TradingView – AMBCrypto

With the Relative Strength Index (RSI) just entering the bullish zone, DOGE has a while before facing trend reversal pressure.

Additionally, just less than a week ago, investors switched stance from panic to confidence. In fact, according to the mean coin age metric, holders have returned to collecting after days of excessive movement of DOGE tokens.

Dogecoin accumulation | Source: Santiment – AMBCrypto

All of this will come to a halt as DOGE follows Bitcoin.

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