Crypto analyst Ali Martinez recently shared data from IntoTheBlock, suggesting that Dogecoin might experience a positive price movement in the near future. Martinez’s analysis focuses on the correlation between Dogecoin and Shiba Inu (SHIB), another meme-based cryptocurrency. According to Martinez, there is a “strong” positive correlation of 0.74 between the two coins over the past two months. This implies that when SHIB’s price shifts, Dogecoin tends to move in a similar direction.
However, it’s worth noting that in recent days, Dogecoin has not shown significant price action, while SHIB has seen a notable surge of 22% in the past week. Despite this temporary divergence, Martinez emphasizes that due to the high correlation coefficient, a bullish price movement could still be on the horizon for DOGE. Investors are advised to monitor the token’s performance in the coming days closely.
Dogecoin’s price has struggled to maintain the momentum it gained from the support of Tesla CEO Elon Musk a few weeks ago. Since then, the meme coin has been trading within a range, with a modest 3.1% gain recorded in the past week. After reaching a 7-day high of $0.07658 on August 5, DOGE retraced slightly and is currently hovering around its weekly high.
As Dogecoin continues to capture the interest of both the crypto community and mainstream media, investors remain eager to see if the positive correlation with SHIB will translate into a significant price rally, potentially leading to a 20% surge in the value of DOGE. With the unpredictable nature of the cryptocurrency market, only time will tell if Dogecoin can break free from its current range and embark on another upward trajectory.
Source: NEWSBTC
