Shiba Inu (SHIB), a prominent meme coin, has demonstrated a strong correlation with Dogecoin (DOGE) in recent months. This trend is noteworthy for investors who monitor meme coin movements closely. The data from IntoTheBlock, a blockchain analytics platform, reveals a significant 97% price correlation between SHIB and DOGE over the past 60 days. This high correlation highlights the interconnectedness of these two cryptocurrencies, driven by similar market forces and investor behavior.
The recent analysis underscores that SHIB and DOGE often move in tandem. When Dogecoin’s price experiences an uptick, Shiba Inu’s price tends to follow suit. This pattern suggests that market participants view both coins similarly, reacting to news and market events in a correlated manner. Despite SHIB’s mission to dethrone Dogecoin as the leading meme coin by market cap, their price movements remain closely linked. The 97% correlation over 60 days is the highest among the cryptocurrencies listed, emphasizing their unique relationship.
WazirX Hacker Stole and Sold $100 Million in SHIBSHIB’s correlation with other major cryptocurrencies also offers interesting insights. For instance, Shiba Inu shows an 87% correlation with Bitcoin (BTC) and a 60% correlation with Ethereum (ETH). These correlations, while significant, are lower compared to Dogecoin. Notably, SHIB’s correlation with Tether (USDT) stands at -0.01, indicating minimal price dependency on stablecoins. This diverse range of correlations reflects SHIB’s market behavior and how it responds differently to various crypto assets.
Understanding these correlations is crucial for traders and investors. The high correlation between SHIB and DOGE suggests that significant price movements in Dogecoin are likely to affect Shiba Inu similarly. This knowledge can help in making informed trading decisions. Additionally, the varying correlations with other cryptocurrencies highlight the importance of considering multiple factors when analyzing SHIB’s price behavior.
This comes only days after Shiba Inu recently faced a dramatic price drop following a major security breach at the Indian cryptocurrency exchange WazirX. Early Thursday, a hacker exploited vulnerabilities in WazirX’s system and successfully stole over $100 million worth of SHIB tokens. This alarming incident triggered widespread panic among traders, leading to a massive sell-off that severely impacted SHIB’s market value.
