Benzinga - A cryptocurrency analyst has shed light on correlation between two popular meme cryptocurrencies, Shiba Inu (CRYPTO: SHIB) and Dogecoin (CRYPTO: DOGE), suggesting a potential relationship in their price movements.
What Happened: Cryptocurrency analyst and trader Ali Martinez shared data from IntoTheBlock which shows a positive correlation coefficient of 0.74 between these digital assets, implying that when the price of Shiba Inu experiences movements, Dogecoin tends to follow suit.
As per Martinez's analysis, Shiba Inu witnessed a surge of 20% during the previous week. However, Dogecoin has not yet manifested a similar pattern.
2/2 $SHIB has risen by 20% over the past week, but $DOGE hasn't mirrored that move yet. Given their high correlation coefficient, it might be wise to closely watch #Dogecoin! pic.twitter.com/N4TXRNYnog— Ali (@ali_charts) August 10, 2023
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Why It Matters: The positive correlation coefficient signifies the tendency of SHIB and DOGE to move in tandem, with changes in the value of one often coinciding with changes in the other. "Given their high correlation coefficient, it might be wise to closely watch Dogecoin," tweeted the analyst.
As of writing, SHIB was trading at $0.00001009, up 4% while DOGE was trading at $0.075, up 0.31% in the last 24 hours, according to Benzinga Pro.
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