What FLOKI’s correlation with Shiba Inu means for its price
  • The near-perfect correlation between the two tokens suggests a potential correction.
  • FLOKI’s on-exchange supply has hit 5 billion, suggesting the 5% increase may be gone.

According to IntoTheBlock, Floki [FLOKI] Strong correlation with Shiba Inu [SHIB] More than any other cryptocurrency. At the time of writing, the 30-day correlation matrix between both meme coins was 0.96.

The correlation matrix stretches from -1 to +1 and focuses on correlations with other cryptocurrencies with high market caps. The closer the value is to -1, the less likely the prices are to move in the same direction.

Two dogs competing

But if it is close to +1, the cryptocurrency Similar paths Almost every time. That was the case with FLOKI and SHIB.

At the time of writing, FLOKI was trading at $0.00014, which represents a 5.84% increase over the past 24 hours, while SHIB was trading at $0.000015, but its price increase was much higher at 15.22%.

The relationship between FLOKI and Shiba Inu

Source: IntoTheBlock

Judging by the correlation, if Shiba Inu’s price continues to rise, FLOKI may be able to match its performance. However, if not, the token’s value may decline.

Looking at other parts of their respective ecosystems, it seems unlikely that the tokens will be able to withstand price appreciation, and one of the main reasons for this is active addresses.

Will the price of FLOKI continue to rise?

Active addresses indicate the number of users who were actively involved in transactions within a given time period. At the time of writing, FLOKI’s 24-hour active addresses have fallen to 432.

In the case of SHIB, it has dropped to 3511. When this indicator drops, it means there is less interaction with the token. When this happens, it also means that the demand for the token is decreasing.

Another thing about AMBCrypto Considered The problem is that the price is growing faster than the network activity: if participation is low and the token price rises, it runs the risk of becoming worthless.

FLOKI network activity decreases

Source: Santiment

If this situation continues, neither FLOKI nor SHIB may be able to keep up with the uptrend, a prediction that was also backed up by exchange supply.

An exchange’s supply measures the number of tokens sent to the exchange’s wallets from external sources. When this metric increases, it means that holders are willing to sell some of their tokens.

However, this value will decrease if token holders wish to withdraw their tokens for self-custody rather than storing them on an exchange.

At the time of writing, FLOKI Exchange Supply 5 billion, a significant increase from July 5th.

FLOKI price is at risk of selling pressure

Source: Santiment

Regardless of whether it is realistic or not, if FLOKI’s market capitalization is expressed in SHIB, it would look like this:

From a price perspective, this could be detrimental to meme coins as increased sell-offs could drive down the value of the token.

If this continues, the price of FLOKI could drop to $0.00012. SHIB has a strong correlation with FLOKI, so it could also move in a similar direction.


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