SHIB, DOGE Show Near Perfect 97% Price Correlation, What’s Driving It?

Dog-themed cryptocurrencies Shiba Inu (SHIB) and Dogecoin (DOGE) are trading in near-perfect sync, with on-chain data showing a 97% price correlation.

The correlation matrix from IntoTheBlock shows the statistical relationship between the prices of different cryptocurrencies. A correlation coefficient close to 1 indicates a strong positive correlation between the two prices, a correlation close to zero indicates no link and a correlation close to -1 indicates a significant negative correlation.

According to IntoTheBlock data, Shiba Inu and Dogecoin had a 30-day positive correlation of 0.97, or 97%, indicating that these two canine-themed cryptos share comparable investor sentiment.

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It also implies that both cryptocurrencies are being impacted by the same macro sentiment or market forces, causing them to move in lockstep. Shiba Inu showed a lower correlation with Bitcoin in the last 30 days, at 0.77.

What’s happening in markets?

Bitcoin fell below $99,000 on Sunday, marking its lowest level in more than a month. Shiba Inu dropped to a multi-month low of $0.00001005, while Dogecoin also suffered significant losses as the broader crypto market fell.

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By late Sunday, digital assets had begun to rebound, with Bitcoin now trading above $105,000. Shiba Inu bulls foiled an attempt to add an extra zero to the SHIB price, with declines halting at $0.00001 before swiftly rebounding higher.

At press time, SHIB was up 5.63% in the last 24 hours to $0.0001163, having reached an intraday high of $0.00001192.

Dogecoin also saw a similar move, sharply rebounding in Monday’s session. At press time, Dogecoin was up 4.85% in the last 24 hours to $0.163, with intraday highs of $0.1677.