Shiba Inu vs. Dogecoin Price Correlation Peaks, Breakout Due?

The two most popular dog-themed memecoins have reached a nearly perfect correlation.

Two Shiba Inu dogs are proudly standing on the mountains as the sun rises.
  • Shiba Inu formed a strong correlation with rival Dogecoin this month.
  • Both popular canine coins dropped by 16% in value in the last 14 days.
  • Most Dogecoin holders are ‘in the money,’ metrics reveal.

The pair of popular memecurrencies have been battling it out on social media, where both have around 3.5 million followers on Twitter. Technical price analysis suggests that SHIB and DOGE performed similarly, setting an unprecedented price correlation level.

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Further on, data from crypto analytics tool IntoTheBlock suggests that the trend might not continue for long, as Dogecoin’s price correlation with the leading digital asset Bitcoin (BTC), is 0.64. At the same time, a whopping 74% of all DOGE holders are considered long-term, with at least a year of HODLing.

On the other hand, Shiba Inu’s long-term investor percentage is 66%, while the correlation with Bitcoin is slightly smaller, currently at 0.6. Only 30% of current SHIB holders are making a profit, which is expected to change when Shibarium, the Layer-2 solution, finally drops.

Most DOGE Holders Making a Profit

Dogecoin has 52% of the current holders making a profit, which indicates a long-term price correlation with Bitcoin and the leading Proof Of Stake blockchain Ethereum (ETH). In comparison, 61% of BTC holders are in profit, while 56% of ETH holders are in the green.

On top of that, the #8 ranked top dog coin flipped the thriving Polygon (MATIC) blockchain while also ousting the leading crypto exchange Binance’s troubled stablecoin Binance USD (BUSD). At press time, the canine crypto DOGE is changing hands at $0.072177, according to CoinGecko.

It’s Getting Hot for Shiba Inu Prior To Shibarium

The self-proclaimed “Dogecoin Killer” Shiba Inu (SHIB) also topped the OG altcoin Litecoin (LTC) to reclaim the #14 position in the crypto charts. The success comes in the wake of fiery disputes between community members and Shibarium Beta, the Layer-2 scaling solution that will detach Shiba Inu from Ethereum’s blockchain.

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The highly-anticipated move led the community to buy Bone ShibaSwap (BONE), another token in Shiba Inu’s Ecosystem planned for all transaction fees. Indeed, the crypto investors see potential in that $BONE has a max supply of 250,000,000, meaning that no more would be minted.

At press time, Shiba Inu trades at $0.00001095, according to CoinGecko. Plummeting by 5.7% in the last 24 hours, SHIB had to go through a massive sell-off by Voyager, even though Shiba Inu’s smart contract is still trending among Ethereum’s TOP 1000 whales.

On the Flipside

  • According to the IntoTheBlock data, Dogecoin is likelier to break out of the ascending triangle formed over the last few months. 
  • However, the bullish divergence for Shiba Inu is likely because of other factors, including the Layer-2 Shibarium launch and Shibburn.
  • Shiba Inu’s burn rate, which helps maintain the canine coin’s price, had spiked by a colossal 27954.22% amid the Shibarium Public Beta launch news this week.

Why You Should Care

Both Japanese dog-themed coins have among the most active communities in the crypto space, constantly trending on Twitter. The public appeal helps educate more people about crypto and attract retail investors.

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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.