Dogecoin, Shiba Inu consolidate as correlation with Bitcoin increases

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Analysts have a bearish view on the Shiba Inu-themed coins. The Bitstamp CEO criticized small cryptocurrencies like Dogecoin, saying Elon Musk’s tweets were causing DOGE price swings. SHIB’s NFT card collection, KriptoKards Shiba, is for sale on OpenSea, though traders are wondering if all 25 cards are worth paying for.

After a week-long price hike, DOGE and SHIB consolidate. Analysts have a bearish outlook on the price of SHIB.

World’s oldest cryptocurrency exchange slams the memecoin hype

Bitstamp CEO Julian Sawyer doesn’t like Shiba Inu-themed pieces. According to Sawyer, Bitstamp will not engage with smaller cryptocurrencies such as Dogecoin. Sawyer criticized tweets from Tesla CEO Elon Musk which led to DOGE price swings.

Sawyer said:

Basically you have to look at the basics, which is why we only want to list assets that have some substance behind them, some liquidity.

The criticisms of the CEO of Bitstamp are supported by the recent price swings of Dogecoin triggered by Musk’s tweet.

Interestingly, influencers who personally promote Dogecoin on Twitter and social media do not have enough DOGEs to benefit from price fluctuations. This strengthens the coin’s community and reaffirms investor confidence in crypto.

Mark Cuban, billionaire entrepreneur and owner of Dallas Mavericks, shared details of his Doge holdings in a recent tweet

The Mavs have what we sold in merch. I personally own $ 494 of DOGE

– Mark Cuban (@mcuban) August 15, 2021

When it comes to DOGE or SHIB, the main concerns for traders and exchanges are the lack of liquidity and centralization. 63% of Dogecoin and almost 90% of the Shiba Inu coin supply is concentrated in the wallets of large holders based on IntoTheBlock data.

Cryptocurrencies with low liquidity run the risk of a price spike due to non-events such as influencer tweets, making them very volatile to hold for the long term.

Influencers like Musk and Cuban are constantly promoting Shiba Inu-themed cryptocurrencies for their usefulness and strong community; recently these attempts have failed to positively influence the price.

Dogecoin’s correlation with the main cryptocurrency Bitcoin has increased; at the time of writing, it is 0.88. This appeared to be a factor that negatively influences the price.

BTC is currently between $ 45,000 and $ 48,000, and the increasing correlation has led to a consolidation in the price of DOGE.

DOGE rival SHIB had a successful week before its price dropped to the $ 0.000008 level. The launch of the KriptoKards SHIBA NFT card collection sparked a run for $ 0.000009. Traders are now uncertain whether the cards are worth the price listed on the NFT OpenSea Marketplace. The floor price of the cards is $ 150 or 0.05 ETH.

Overall, despite recent developments, the outlook for traders on the two major Shiba Inu-themed cryptos is largely bearish.

According to analysts at FXStreet, SHIB is ready to retrace before the next step.

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