Shiba Inu and Bitcoin exhibit a negative correlation, implying that when one's value rises, the other tends to decline.This correlation may be attributed to the introduction of Shibarium, a novel layer-2 solution for Shiba Inu.Since its launch, Shibarium has experienced a surge in its market capitalization and transaction volume, reaching unprecedented levels.Remarkably, the rate of Shiba Inu token burning has skyrocketed, resulting in the destruction of nearly half a billion SHIB tokens over the past week.Presently, Shiba Inu is forming a descending triangle pattern, indicating a potential breakout in October.

We frequently witness a strong correlation between Bitcoin and altcoins, where their prices tend to move in the same direction. However, in a rare twist, some cryptocurrencies exhibit a different phenomenon: negative correlations. Negative correlations mean that when one cryptocurrency rises, the other falls, and vice versa. This peculiar dynamic is currently playing out between Bitcoin and Shiba Inu. In this article, we'll delve into the details of this unique correlation and explore what it means for investors and the future prices of these two cryptocurrencies.

Evidence of Negative Correlation: Take a look at the chart below, which overlays Shiba Inu's price in red and Bitcoin's price in green. Notice how, at crucial price levels, when Bitcoin is on the rise, Shiba Inu tends to decline, and when Shiba Inu surges, Bitcoin's value takes a dip. On-chain analytics firm IntoTheBlock confirms this trend, reporting a 30-day correlation coefficient between the two assets that has recently reached a noteworthy low of -0.24.

The Why Behind This Phenomenon: The explanation for this negative correlation may be tied to a new layer-2 solution called Shibarium, launched less than a month ago. Since its debut, Shibarium has witnessed significant growth in market capitalization and transaction volume. With more than 3 million total transactions, a stable daily transaction score of 20,000, and over 1.2 million wallet addresses, Shibarium's success and its recent partnership with HSBC have expanded the utility of Shiba Inu. Consequently, SHIB is increasingly being used for transactions, causing it to gradually decouple from Bitcoin.

Noteworthy Burn Rate: An essential factor in this shift is the skyrocketing burn rate of SHIB tokens. Over the last 24 hours, a staggering 125 million $SHIB has been burned, marking a 71% increase from the previous day. In the past week alone, nearly a billion SHIB tokens have been burned, with 292,842 $SHIB tokens incinerated in the last hour. This burn rate reflects the SHIB community's commitment to reducing the circulating supply, a move intended to positively impact the token's price.

October Implications: As of now, Shiba Inu maintains its position above the $0.000007 support level, with relatively low volatility. The price action reveals SHIB's consolidation within a descending triangle pattern, as it's squeezed between trendlines. Intriguingly, Bitcoin also faces resistance around the $26,919 zone. This consolidation suggests the potential for a breakout, likely bullish, for one of these cryptocurrencies in October.

Should SHIB break out of its 20-day EMA around $0.00000742 without dipping below $0.000007, a significant 50% price increase may be in store, potentially pushing it towards $0.00001136, reminiscent of its performance on August 12th

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