Markets
Will Bitcoin Guide Shiba Inu (SHIB) to Recovery?
Shiba Inu (SHIB) the price may increase in the coming days as the meme coin is receiving support from multiple directions.
One of the biggest drivers of recovery will be SHIB’s increasing ability to follow in Bitcoin’s (BTC) footsteps.
Shiba Inu Investors Remain Hopeful
Shiba Inu price is looking to reclaim May highs as the meme coin has recovered from lows of $0.00001473. The meme coin is no stranger to volatility of the cryptocurrency market, but the recovery this time is not so fast.
A key factor behind this is the low correlation that Shiba Inu shares with Bitcoin. At the time of writing, Bitcoin was showing strong signs of recovery, but SHIB may not see the same as its correlation with BTC is at -0.44, which is an improvement from -0.96 last month.
A positive correlation means the asset will follow in BTC’s footsteps, while a negative one suggests the opposite. This is hindering Shiba Inu’s ability to see a recovery, as when the broader market improves, SHIB may struggle.
Shiba Inu Correlation with Bitcoin. Source: Trading view
Thus, when the correlation becomes positive, growth can be expected for the meme coin.
This notion is already supported by investors who have been reducing sales for a long time. Looking at active addresses by profitability reveals that the altcoin is not witnessing much selling at the moment.
Typically, when profit-taking investors exceed 25% stake in the network, the likelihood of selling increases. This is because these investors tend to try to book profits on their holdings. However, since, in the case of SHIBthis domain is less than 13.5%, investors are not very interested in selling.
Read more: How to Buy Shiba Inu (SHIB) and Everything You Need to Know
This is a good thing for the Shiba Inu price as it indicates recovery.
SHIB Price Prediction: Recovery After Consolidation
Shiba Inu Price Negotiation at $0.00001719 is seeing a minimal bounce back from the lows of $0.00001473. The next resistance for the crypto asset is at $0.00001800, breaking which would allow a rally to $0.00002903.
SHIB likely to form consolidation below this level until stronger bullish signals emerge. The same could the meme coin recovering beyond $0.00002093 towards $0.00002267.
Read more: Shiba Inu (SHIB) Price Prediction 2024/2025/2030
However, if this fails, consolidation may continue between $0.00002093 and $0.00001800. This will likely invalidate the moderately bullish thesis.
Disclaimer
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