Dogecoin and Shiba Inu have been two of the most popular meme-based community-focused projects in recent years. Their common appeal has attracted the attention of investors and influential figures in the crypto space. According to data, we may see a new rise in DOGE price thanks to the correlation between DOGE and SHIB.
Famous Figure Revealed
Ali Martinez, a renowned crypto analyst, highlighted an interesting trend between the two tokens. He pointed out that DOGE and SHIB have shown a strong price correlation in recent months. This correlation indicates that when the price of one token moves, the other often follows. Data from the blockchain data analysis firm IntoTheBlock supports Martinez’s observation and shows a strong positive correlation of 0.74 between DOGE and SHIB.
This correlation coefficient essentially means that SHIB and DOGE are closely linked in terms of price movements. For example, if there is an increase in SHIB price, a similar trend is expected for DOGE. Taking this relationship into account, Martinez speculates that DOGE may be preparing for a significant price increase, especially considering the recent price surge of SHIB. Many believe this is due to the anticipated Shibarium mainnet launch at the end of the month.
DOGE and SHIB Correlation in Numbers
To provide some examples, SHIB witnessed an impressive price increase of over 16% in the past seven days. If we extend the timeframe, SHIB’s price has increased by 29.40% in the last 30 days and by 28.94% since the beginning of the year. In contrast, Dogecoin’s performance has remained relatively low with figures of 1.29%, 3.42%, and 6.01% for the same periods mentioned above.
It should be noted that Martinez previously presented notable data regarding important price levels that investors should consider for DOGE, indicating potential support and resistance levels.
At the time of writing this article, SHIB was trading around $0.0000100, making it the 14th most valuable crypto asset with a market capitalization of $6.03 billion. Meanwhile, DOGE is trading at approximately $0.0745, giving it a market capitalization of $10.51 billion and making it the 8th most valuable cryptocurrency asset.
