DOGE and SHIB Price Correlation: Potential Rally Ahead for Dogecoin?

Dogecoin (DOGE) and Shiba Inu (SHIB) have been two of the most popular meme-based community-driven projects over the past few years. Their shared appeal has garnered significant attention from investors and influential figures in the crypto space.

Recently, Ali Martinez, a well-known crypto analyst, highlighted an interesting trend between the two tokens. He pointed out that DOGE and SHIB have demonstrated a strong price correlation over recent months. This correlation suggests that when one token’s price moves, the other often follows suit. Data from IntoTheBlock, a crypto analytics firm, supports Martinez’s observation, showing a robust positive correlation of 0.74 between DOGE and SHIB.

This correlation coefficient essentially means that the price movements of SHIB and DOGE are closely linked. For instance, if SHIB’s price experiences a surge, it’s likely that DOGE will also see a similar trend. Given this relationship, Martinez has inferred that DOGE might be gearing up for a significant price rally, especially considering SHIB’s recent price surge, which many believe is driven by the anticipation of the Shibarium mainnet launch, which is expected later this month.

To provide some context, over the past seven-day period, SHIB witnessed an impressive price increase of more than 16%. If we extend the timeframe, SHIB’s price has surged by 29.40% and 28.94% over the past 30-day and year-to-date periods, respectively. In contrast, Dogecoin’s performance has been relatively subdued, with modest return-on-investment (ROI) figures of +1.29%, +3.42%, +6.01% for the aforementioned periods.

It’s worth noting that Martinez has previously offered insights into crucial price points for DOGE that investors should keep an eye on, indicating potential support and resistance levels.

At the time of writing (i.e. as of 1:36 p.m. UTC on 14 August 2023), SHIB is trading at around $$0.0000100, making it the 14th most valuable cryptoasset with a market cap of $6.03 billion. Meanwhile, DOGE is trading at around $0.0745 (which gives it a market cap of $10.51 billion, making it the 8th most valuable cryptocurrency).

Featured Image Credit: Photo / illustration by Kevin_Y via Pixabay

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