Citing their high price correlation coefficient, Ali Martinez expects Dogecoin (DOGE) to mirror Shiba Inu’s (SHIB) latest one-week double-digit uptick.
Dogecoin (DOGE) and Shiba Inu (SHIB) remain among the top community-driven crypto projects by market cap. This has attracted numerous investors and prominent figures to both projects.
Besides basking in elevated popularity, SHIB and DOGE have maintained a high price correlation coefficient over the past months.
A popular market watcher, Ali Martinez, called attention to this trend on Thursday. The top analyst further told investors to expect a possible DOGE pump, citing the Shibarium-inspired SHIB price rally.
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
SHIB and DOGE Price Correlation
IntoTheBlock shows a strong correlation between SHIB and DOGE price movements. In particular, the data reveals that the 60-day price correlation coefficient for SHIB and DOGE was 0.74 at the time of the update.
This entails that both assets tend to move in the same trend. Essentially, when Shiba Inu’s price pumps or declines, Dogecoin’s price often follows suit.
Citing this high correlation matrix and SHIB’s recent upsurge, Martinez presumed that DOGE could experience a rally in the coming days.
It bears noting that Shiba Inu recorded an impressive run in the past week. Notably, the canine-themed token has appreciated over 20% in the last seven days. At press time, the asset has posted an increase of over 31% and 45% in the past 30 and 60 days.
Meanwhile, Dogecoin continues to struggle with a meager 2% gain over the past week. A similar 20% increase would take DOGE to the $0.09 level.
Recall that the renowned expert previously revealed some critical support and resistance levels investors should watch on the DOGE chart.
At press time, Shiba Inu is changing hands at $0.000009865 while DOGE trades for $0.07534. With the launch of the Shibarium mainnet fast approaching, several experts have shared varying bullish expectations for SHIB.