The rise of meme coins often signals the beginning of unparalleled speculative trading by FOMO traders. The second largest meme coin, Shiba Inu, has already experienced significant growth in recent days fueled by the speculation of Shibarium tier two launches.
According to the latest crypto price oracles, the price of Shiba Inu is up about 22 percent since early August to trade around $0.00000987 on Thursday. The recent revival of Shiba Inu has been attributed to increased development activity related to the launch of Shibarium L2.
Can Dogecoin (DOGE) Mirror SHIB’s Success?
According to data from Intotheblock, the correlation matrix between Shiba Inu and Dogecoin is about 0.74, meaning that the rise of one token is often reflected on the other. Currently, Dogecoin price has encountered significant resistance after retesting a macro downtrend. As a result, the top meme coin has consolidated over the past week compared to double-digit win rates in SHIB.
With the identified high correlation between Shiba Inu and Dogecoin, US-based crypto analyst Ali stressed that it is prudent for traders to carefully monitor the latter for possible price breakouts.
Meanwhile, the correlation analysis between Dogecoin and other digital assets revealed that Chainlink (LINK) and Uniswap (UNI) have a bigger impact on the top meme coin than Shiba Inu. In particular, the prices of both LINK and UNI have shown an upward trend in recent weeks.