Is Shiba Inu inversely correlated to DOGE?

In this post:

  • New reports note that Twitter is pausing previous plans to add cryptocurrency wallet support on the app.
  • Dogecoin was hit by the news, as the price crashed by over 7% within hours.
  • The second-largest meme token Shiba Inu went the opposite, increasing by 3%.

Both Dogecoin and Shiba Inu command the meme cryptocurrency category, but their price trends seem to have completely changed. Earlier today, the Dogecoin community was hit with the news that Twitter could be planning to halt the previous decision to add cryptocurrency wallet support on the social networking app.

Dogecoin falls, Shiba Inu pumps

Consequently, the price of Dogecoin began dropping notably. At press time, DOGE has already declined to $0.1229, which represents more than a 7% decrease in the 24 hours time frame. Meanwhile, the second-largest meme crypto Shiba Inu has gone the opposite, even on the heels of the report. 

Shiba currently trades at $0.00001257, which accounts for over a 3% increase in 24 hours timeframe. As seen from Coinmarketcap’s price chart, it appears that some funds from Dogecoin may have rotated back into Shiba Inu, given that notable spike that happened within minutes. 

Moreso, Dogecoin’s trading volume is currently down by 26.65% to $2.83 billion. However, the volume of Shiba Inu has increased by 2% to $603 million, according to Coinmarketcap.

Why is Dogecoin falling?

Dogecoin made headlines last week following the acquisition of Twitter by Elon Musk, who has previously voiced support for the cryptocurrency. With Musk spearheading the social platform, many people speculated that Twitter could adopt the meme cryptocurrency as a payment option for its premium services.

These assumptions led to a massive rally in Dogecoin, with an over 130% increase at the end of October. But the information shared with Platformer revealed that Twitter is putting its cryptocurrency wallet plans on pause, among other planned and existing features on the social platform. 

The report meant that Twitter may not be adding Dogecoin or any cryptocurrency support anytime soon, hence the crash of DOGE. 

Elsewhere, Social media giant Meta is planning to step up its cryptocurrency and Web3 by announcing that Instagram will soon launch new features that can allow creators to easily issue and sell NFTs right on the app.  

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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