Markets
Will Bitcoin Drive Shiba Inu (SHIB) to Recovery?
The Shiba Inu (SHIBA) the price may increase in the coming days as the meme coin is finding support from multiple directions.
One of the main drivers of the recovery will be SHIB’s increasing ability to follow in the footsteps of Bitcoin (BTC).
Shiba Inu Investors Remain Confident
Shiba Inu price is trying to reclaim May highs as the meme coin bounced off the lows of $0.00001473. The meme coin is no stranger to the volatility of the cryptocurrency market, but this time the recovery is not so rapid.
A key factor behind this is the low correlation that Shiba Inu shares with Bitcoin. At the time of writing, Bitcoin is showing strong signs of recovery, but SHIB may not see the same thing as its correlation with BTC stands at -0.44, improving from -0.96 a month ago.
A positive correlation means the asset will follow BTC’s footsteps, while a negative one suggests the opposite. This hinders Shiba Inu’s ability to see a recovery, as when the broader market improves, SHIB may struggle.
Correlation between Shiba Inu and Bitcoin. Source: Trading View
Therefore, when the correlation becomes positive, one can expect growth for the meme coin.
This notion is already supported by investors who have been reducing their selling for a long time now. Looking at active addresses by profitability, it turns out that the altcoin is not seeing much selling at the moment.
Generally, when profit investors exceed 25% of network participation, the likelihood of selling increases. This is because these investors tend to try to book profits on their stocks. However, since, in the case of SHIBthis dominance is less than 13.5%, investors are not too inclined to sell.
To know more: How to Buy Shiba Inu (SHIB) and Everything You Need to Know
This is a positive aspect for the Shiba Inu’s price, as it suggests a recovery period.
SHIB Price Forecast: Recovery After Consolidation
Shiba Inu Market Price at $0.00001719 is seeing a minimal bounce from the lows of $0.00001473. The next resistance for the cryptocurrency comes at $0.00001800, breaking which would allow a rise to $0.00002903.
SHIB likely to form a consolidation below this level until stronger bullish signals appear. The same could the meme coin that gathers over $0.00002093 towards $0.00002267.
To know more: Shiba Inu (SHIB) Price Prediction 2024/2025/2030
However, if this fails, the consolidation could continue between $0.00002093 and $0.00001800. This will likely invalidate the moderately bullish thesis.
Disclaimer
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