The rise of meme coins often signals the onset of unparalleled speculative trading by FOMO traders. Already, the second largest meme coin, Shiba Inu, has registered significant growth in the past few days fueled by the speculation of Shibarium layer two launches.
According to the latest crypto price oracles, Shiba Inu’s price has gained approximately 22 percent since the beginning of August to trade around $0.00000987 on Thursday. The recent Shiba Inu upswing has been attributed to the increased development activity pertaining to the launch of Shibarium L2.
Can Dogecoin (DOGE) Mirror SHIB’s Success?
According to data provided by Intotheblock, the correlation matrix between Shiba Inu and Dogecoin is about 0.74, which means that the rise of one token is often mirrored on the other. Currently, the Dogecoin price has experienced significant resistance after retesting a macro-falling line. As a result, the top meme coin has consolidated in the past week compared to the double-digit percentage gains in SHIB.
With the identified high correlation between Shiba Inu and Dogecoin, US-based crypto analyst Ali highlighted that it is prudent for traders to watch the latter carefully for possible price breakouts.
Meanwhile, the correlation analysis between Dogecoin and other digital assets revealed that Chainlink (LINK) and Uniswap (UNI) have a higher impact on the top meme coin than Shiba Inu. Notably, both LINK and UNI prices have been on a rising trend in the past few weeks.
