SHIB, DOGE, and BTC: this unusual digital currency trio records the highest price correlation ratio this year.
The top dog meme currencies, Dogecoin (DOGE) and Shiba Inu (SHIB), have been battling it out this Uptober with similar gains of 10.5% and 8%, respectively. In the shadow of Bitcoin’s monumental rally to retest the $35,000 price range, DOGE reached $0.074 on October 26th, 2023.
The sudden price behavior change is evident in the on-chain metrics, pointing to a 0.91 SHIB price correlation with the king crypto BTC. Nevertheless, the northward resistance barrier rejected SHIB below $0.000008 after a swift market correction.
At press time, Shiba In is changing hands at $0.00000783 with a slender 0.9% drop in the last 24 hours, according to Coin Gecko. SHIB fixated on the confluent support level for a week but still held a 15.2% profit in the last two weeks.
Can DOGE Break the Descending Triangle?
Dogecoin, the largest Proof of Work (PoW) blockchain besides the king crypto Bitcoin, has often been trusted by crypto enthusiasts for a similar but cheaper structure of payments on-chain. After Ethereum (ETH) switched to Proof of Stake (PoS), DOGE took the reins as the second largest PoW, successfully onboarding a part of former Ether miners.
However, the current extremely high DOGE vs. BTC price correlation of 0.95 was not always the case – DOGE had been trading in a descending triangle for over two years since hitting the all-time high of $0.731 on May 8th, 2021. Now at a steep decline of 90.69% from the previous ATH, Dogecoin’s outlook for trend inversion grows stronger.
To test a trend reversal opportunity, professional crypto trader Ali Martinez used the Triple 9s, a triangle geometrical figure more formally known as the TD Sequential. This crypto price reversal and trend exhaustion tool pinpointed a favorable entry point around $0.069, marking the bottom of this estimation at $0.049.
Finally, the graph indicates that a bull rally up to 1,525% is on the cards if DOGE proves resilient above the bottom oscillator of the 9-fold TD Sequential for ten months. At press time, DOGE is changing hands at $0.0677, facing a stiff market correction with a 6.3% weekly downturn for the canine coin.
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