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Shiba Inu and Dogecoin Correlation Reaches Long Unseen Values

Wed, 03/08/2023 - 17:00
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Arman Shirinyan
Shiba Inu and Dogecoin correlating stronger than in past few months, data shows
Shiba Inu and Dogecoin Correlation Reaches Long Unseen Values
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In recent days, the price correlation between Shiba Inu and Dogecoin has reached almost 100%, signaling synchronized movement between the two meme coins. This correlation suggests that investors may be moving their funds away from riskier assets, including these meme coins and tokens.

Shiba Inu and Dogecoin have been in the spotlight for their meteoric rise in value and popularity, driven largely by social media hype and celebrity endorsements. However, their massive rallies ended with devastating losses for the majority of investors.

Shiba Inu chart
Source: TradingView

This shift in sentiment is reflected in the near-perfect correlation between Shiba Inu and Dogecoin prices, as investors seek to diversify their portfolios and avoid high-risk assets. This trend is also seen on the overall cryptocurrency market, with many tokens experiencing significant drops in value in recent weeks. At press time, Shiba Inu is trading at $0.000011, while DOGE is moving at $0.07.

XRP tired of being down

XRP, the digital asset associated with Ripple, has been facing bearish pressure for the last few weeks due to the descending price channel, which has acted as a significant resistance level. However, recent price movements suggest the asset might be on the verge of a breakthrough. XRP has gained around 5% in the last two days, indicating that it might finally break through the resistance level and move upward.

SEC v. Ripple: XRP's Fate to Be Decided by Trial, Crypto Lawyers Agree

The positive price movement of XRP can be attributed to various factors. First, there has been an increase in the overall trading volume of the asset, which is a positive indicator for its price. Second, regulatory concerns surrounding the asset have been easing, with the SEC's lawsuit against Ripple moving toward a resolution. These factors, combined with the recent price momentum, have created positive sentiment in the XRP market.

The price of XRP has been trading within the descending price channel since the beginning of January 2022, and the bearish trend has been frustrating for many investors. However, the recent price movement has given some hope to investors that XRP might finally be on the verge of a breakout. If XRP manages to break through the resistance level, it could trigger a new bullish trend for the asset.

Powell's pushes crypto down

The cryptocurrency market has experienced a severe drop in the past few days after Jerome Powell, the chairman of the U.S. Federal Reserve, spoke about the regulator's close scrutiny of the industry. This statement had an immediate impact on the market, causing a massive sell-off and liquidations, reaching a total of $100 million.

400 Billion SHIB Dumped by Voyager Despite Positivity with Binance US

Powell's comments have been interpreted by many in the crypto community as a signal that the U.S. government may be looking to impose more stringent regulations on the industry. This sentiment has led to panic among investors, many of whom are now rushing to exit their positions before any new regulations are implemented.

The strict rhetoric of the Fed chair negatively affects the crypto market in several ways. First, it creates uncertainty and fear among investors, leading to panic selling and liquidations. Second, it signals to potential new investors that the cryptocurrency industry may be a risky and unstable market, which can discourage them from investing in the sector.

Moreover, increased regulation could also negatively affect the overall growth and development of the cryptocurrency industry.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.