- The correlation between the memes means that DOGE’s price may increase soon.
- SHIB’s active addresses were higher than DOGE but the broader sentiment was similar.
Following Shiba Inu’s [SHIB] seven-day 20% surge, all eyes are now turning to Dogecoin [DOGE], its close contender in the meme coin arena. While SHIB has enjoyed this uptick period, the same cannot be said of DOGE.
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According to CoinMarketCap, DOGE exchanged hands at $0.07 at press time. This price represents a 2.69% increase within the same period SHIB gained 20%. However, SHIB and DOGE have a strong correlation, dating back to 2021.
Do the memecoins have each other’s back?
According to IntoTheBlock’s data, the correlation coefficient between both cryptocurrencies was 0.74. This was higher than DOGE’s correlation with Ethereum [ETH] and Bitcoin [BTC].
Due to this interdependence, market participants are expecting DOGE to follow in SHIB’s footsteps. One of those with optimism about DOGE was CryptoKaloe, the Twitter-famous analyst.
The analyst explained that DOGE’s price action might leave its boring state soon. This could drive prices upwards much more than traders anticipate.
$DOGE / $BTC is on the verge of doing something like this, but you still don't want to believe it. pic.twitter.com/uAQb9uDsqr
— K A L E O (@CryptoKaleo) August 9, 2023
Kaleo, in his analysis, also opined that DOGE/BTC pair was showing signs from 2016 when it broke out and substantial gains for its holders.
“$DOGE / $BTC HTF breakouts have been one of the most predictable patterns in crypto over the past decade. Slow bleed over a longer duration of time (usually 7 months +) followed by a quick, face-melting pump.”
Ecstasy alone isn’t the answer
However, for DOGE to capture the spotlight, the coin might need more than a change in the technical outlook. One part that could be vital is the active addresses.
Based on on-chain data, SHIB’s 30-day active addresses rose to 254,000. An address is considered active once it is the direct sender or recipient of the transaction.
Source: Santiment
So, the hike in SHIB’s active addresses means that many wallets were involved in transacting SHIB, which, in turn, affected the price positively.
In contrast, DOGE’s 30-day active addresses were 32,400 at the time of writing. The data, as shown by Santiment, revealed that the metric had flatlined since 3 June. This indicated that, at press time, the coin had not experienced an influx of participants like SHIB.
If Dogecoin is to follow up with the increase, the active addresses need to move in the upward direction.
Interestingly, the weighted sentiment suggested that DOGE’s correlation with SHIB, irrespective of the price divergence, was as solid as ever.
Read Shiba Inu’s [SHIB] Price Prediction 2023-2024
At press time, SHIB’s weighted sentiment was 1.41 while DOGE was 0.45. The weighted sentiment shows the unique social commentary around an asset.
Source: Santiment
Therefore, since the metrics of both cryptocurrencies were positive, it meant that the acumen around them was bullish at the time of writing.
