SHIB & DOGE Price Correlation Hints at Shifting Investor Sentiment

The charts unravel a historically high price correlation between the top dog coins.

A Shiba Inu puppy walking down a desert path, followed by an adult Shiba Inu.
Created by Gabor Kovacs from DailyCoin
  • A surge of developer activity on Shibarium’s testnet has sparked a 25% run.
  • Pro crypto trader explains why Dogecoin is on his watchlist for the week.
  • Two blockchain analytics firms spot Shiba Inu’s increased influence.

Ali Martinez, a professional crypto trader who shares some of his insights on Twitter, indicated a growing price correlation between two of the largest memecoins – Shiba Inu (SHIB) and Dogecoin (DOGE).

The experienced trader used the blockchain analytics tool IntoTheBlock to determine the price correlation between SHIB and DOGE for the past two months. 

This correlation matrix points to an accelerated price correlation rate of 0.74, which only falls behind Chainlink (LINK) and Uniswap (UNI) and is at least twice as much as $DOGE’s correlation coefficient with the leading crypto assets Bitcoin (BTC) and Ethereum (ETH).

DOGE to Catch Up with SHIB?

Diving deeper into his crypto chart analysis, Ali also mentioned that Dogecoin is yet to catch up with last week’s 25% run for SHIB. For this reason, Ali is closely watching the $DOGE price movement, which is likely to gain on Shiba Inu’s developer efforts if the high correlation rate persists.

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Kaiko Data, another blockchain analytics firm, has spotted huge returns on SHIB since July 1st, 2023. According to Kaiko, the upsurge is directly tied to the increased developer activity on the network as the preparation of Shibarium’s mainnet continues.

Shibarium’s testnet had a great impact on both the technical and social momentum of Shiba Inu. Before Puppynet’s official blockchain explorer halted the counting of stats, it amounted to over 27 million transactions, 3.5 million wallets, and an efficient speed of 6.4 average block time.

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The favorable testnet examination increased investors’ confidence in $SHIB and $BONE. However, DOGE, the memecoin with the largest market capitalization, is yet to adjust to the massive 33% monthly bull run of SHIB. While Ali doesn’t give a timeframe, the technical indications put $DOGE back on the altcoin watch list.

On the Flipside

  • The historical price correlation for these two meme tokens usually depended on Dogecoin’s bull runs, for instance, Elon Musk’s Twitter Takeover or the famous logo switch.
  • The freshly-claimed price correlation for SHIB sets a new precedent – it’s yet to be revealed how DOGE responds to Shibarium’s mainnet and other developments.

Why This Matters

Price correlations in the crypto market can help determine the next bull cycles for specific cryptocurrencies.

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

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Tadas Klimasevskis

Tadas Klimaševskis is a Lithuanian journalist at DailyCoin, specializing in covering the lighter side of the crypto industry such as memecoins and pop culture in the metaverse. He has experience as a music artist, English language teacher, and freelance writer, and uses his creative writing skills to summarize valuable information in his work. He is also a strong believer in the potential of blockchain and spends his free time listening to music, traveling, and watching basketball games.