- 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.
As a seasoned crypto investor with a few battle scars and hard-earned lessons under my belt, I’ve learned to keep a keen eye on market trends and correlations between different tokens. And based on the latest data from IntoTheBlock, the correlation between FLOKI and SHIB is nearly perfect at 0.96.
Based on IntoTheBlock’s analysis, Floki (FLOKI) and Shiba Inu (SHIB) exhibit a stronger connection than any other cryptocurrencies, with a correlation of 0.96 over the past 30 days.
A correlation matrix ranges from -1 to +1, highlighting the relationship between different cryptocurrencies with significant market capitalizations. Values near -1 imply infrequent price alignment.
A two-dog race
As a crypto investor, I’ve noticed that when the correlation between two cryptocurrencies approaches a value of +1, it indicates that they tend to follow the same price trend most of the time. For instance, this was true for FLOKI and SHIB in the past.
At the moment of publication, FLOKI‘s value was priced at $0.00014. This represented a 5.84% rise in the previous 24 hours. In contrast, SHIB had a price tag of $0.000015 during the same period. However, its price surge was more pronounced at 15.22%.
As a researcher studying the cryptocurrency market, I’ve noticed a strong correlation between the price trends of Shiba Inu and FLOKI. If Shiba Inu’s price continues to climb, it’s possible that FLOKI could follow suit and experience similar growth. However, if Shiba Inu’s price stagnates or declines, there’s a risk that FLOKI’s value could drop as well due to their close relationship in the market.
As an analyst, I’ve examined the broader contexts of each token’s ecosystem, and my observation is that the current price increases might not be sustainable based on available data, particularly regarding active addresses.
Can FLOKI’s price continue to rise?
As a crypto investor, I’m keeping an eye on the active address metrics for FLOKI. Currently, the number of unique addresses engaged in transactions within the last 24 hours is at 432.
The Shib token dropped to a level of 3511. A decrease in this metric indicates reduced engagement with the token. It further suggests that the token’s appeal and the market’s desire for it are waning.
As a crypto investor, I’ve noticed that there can be a disconnect between the rapid price growth of certain tokens and the relatively low network activity. This imbalance can be risky because when few people are actively participating in the network yet prices are surging, it may not sustainably support the value in the long run.
As an analyst, I’ve observed that if the current trend persists, FLOKI and SHIB may struggle to maintain their upward momentum based on recent market data. Additionally, the amount of these cryptocurrencies available for trading on exchanges supports this prediction.
The quantity of tokens entering exchange depositories indicates the readiness of token holders to dispose of some of their assets. An uptick in this figure signifies that these holders may be looking to offload their tokens.
Yet, the number of tokens in circulation decreases when token holders prefer to withdraw their tokens from exchanges for personal custody.
At the present moment, the available supply of FLOKI on exchanges amounts to five billion tokens. This represents a significant jump in comparison to the fifth of July.
Realistic or not, here’s FLOKI’s market cap in SHIB terms
As a researcher studying memecoins, I would express this point as follows: If more investors decide to sell their tokens, the price of the memecoin may decrease due to an oversupply in the market.
Should the current trend continue, the value of FLOKI could potentially decrease to $0.00012. Given SHIB‘s close connection to it, there’s a good chance that SHIB may experience a comparable downturn as well.
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2024-07-07 09:11