SHIB Might Affect Dogecoin Prospects, Analyst Explains

However, if on-chain data and history are any indication, Dogecoin might be on the verge of a significant price move if it follows the SHIB trend. SHIB and DOGE price movements have historically exhibited a strong correlation; whether this will change this time is unknown.

Shiba Inu achieves strong correlation with 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

The crypto analyst explains the implications of such a strong correlation: "This means that when SHIB's price moves, DOGE often follows in the same direction."

Given this, Ali suggests keeping a careful eye on Dogecoin, which has not yet followed SHIB's recent price movement.

In the past, Shiba Inu historically followed Dogecoin pumps. If Dogecoin succeeds in claiming a hotly contested barrier as support, it might follow Shiba Inu's pump. However, where Dogecoin trends next remains an open question.