The post What FLOKI’s correlation with Shiba Inu means for its price appeared on BitcoinEthereumNews.com.

A near-perfect correlation between both tokens indicate potential corrections. FLOKI’s supply on exchanges hit 5 billion, suggesting that the 5% increase might be erased. According to IntoTheBlock, Floki [FLOKI] shares a stronger correlation with Shiba Inu [SHIB] than any other cryptocurrency. At press time, the 30-day correlation matrix between both memecoins was 0.96 The correlation matrix stretches from -1 to +1 and focuses on a crypto’s correlation with others with a high market capitalization. Values closer to -1 indicate that prices rarely move in the same direction. A two-dog race But when the reading is close to +1, it means that the cryptocurrencies move in a similar path almost every time. That was the case with FLOKI and SHIB. At press time, FLOKI’s price was $0.00014.  This was a 5.84% increase in the last 24 hours. SHIB, on the other hand, changed hands at $0.000015. But its price increase was much higher at 15.22%. Source: IntoTheBlock Going by their correlation, if Shiba Inu’s price continues to increase, FLOKI might be able to match its performance. But if it does not, the value of the token might drop. Looking at the other parts of their respective ecosystems, it does not seem like the tokens would be able to sustain the hikes. One of the top reasons for this is the active addresses. Can FLOKI’s price continue to rise? Active addresses show the number of users actively involved in transaction within a given timeframe. As of this writing, FLOKI’s 24-hour active addresses was down to 432. For SHIB, it fell to 3511. When this metric falls, it means that interaction with the token is low. If this happens, it also implies that demand for the token is decreasing. Another thing AMBCrypto considered was how the prices were growing faster than the network…

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Filed under: News - @ July 7, 2024 7:12 pm