The recent rise of Shiba Inu (SHIB) has certainly caught the attention of investors and enthusiasts. While Shiba Inu’s impressive performance has been the talk of the town, crypto analyst Ali suggests that this might have significant implications for another popular dog-themed cryptocurrency – Dogecoin (DOGE).
The numbers speak for themselves. According to Kaiko, Shiba Inu’s developer activity has surged, playing a pivotal role in its recent price increase. This surge in developer interest has been instrumental in pushing SHIB to outperform several altcoins, including the well-known Dogecoin.
1/2 Data from @intotheblock shows a strong positive correlation of 0.74 between $SHIB and $DOGE. This means that when #SHIB's price moves, #DOGE often follows in the same direction. pic.twitter.com/pavkJSv79n
— Ali (@ali_charts) August 10, 2023
When comparing the returns of Shiba Inu and Dogecoin since the beginning of July, SHIB is currently taking the lead, evident in its robust upward trajectory at the start of August. CoinGecko data highlights that Shiba Inu has managed to maintain its positive stance across various time frames, with the exception of its yearly performance. Over the past 30 days, SHIB has recorded gains of an impressive 31.2%, a feat that Dogecoin has not been able to match entirely, showing gains of 16.3% during the same period.
Shiba Inu and Dogecoin show correlation
The intriguing question that arises from this trend is whether Dogecoin, historically showing a strong correlation with SHIB in terms of price movements, will soon follow suit. Ali, the crypto analyst, presents the intriguing data from IntoTheBlock, which indicates a robust 60-day correlation coefficient of 0.74 between SHIB and DOGE. The implication is clear – when Shiba Inu’s price makes a move, Dogecoin tends to follow a similar path.
Ali offers a word of caution, suggesting that the strong correlation between SHIB and DOGE could indicate a significant price move for Dogecoin in the near future, aligned with SHIB’s recent surge. Investors and crypto enthusiasts alike are now keeping a keen eye on Dogecoin, curious to see if it will indeed follow the trajectory set by its fellow dog-themed cryptocurrency. The world of crypto remains ever dynamic, and whether history repeats itself in this case is a question that only time will answer.