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Will Bitcoin Guide Shiba Inu (SHIB) Towards Recovery?
Shiba Inu (SHIB) The price could increase in the coming days as the meme coin is getting support from multiple directions.
One of the key drivers of recovery will be SHIB’s improved ability to follow in Bitcoin’s (BTC) footsteps.
Shiba Inu Investors Remain Optimistic
Shiba Inu price is looking to reclaim May highs as the meme coin rebounded from lows of $0.00001473. The meme coin is no stranger to the volatility of the cryptocurrency market, but the recovery this time is not as fast.
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 since its correlation with BTC stands at -0.44, which is an improvement from -0.96 a month ago.
A positive correlation means that the asset will follow in BTC’s footsteps, while a negative correlation suggests the opposite. This hinders Shiba Inu’s ability to see a recovery, as when the broader market is improving, SHIB may struggle.
Correlation between Shiba Inu and Bitcoin. Source: TradingView
So when the correlation becomes positive, we can expect growth in the currency itself.
This idea is already supported by investors who have been reducing their sales for a long time. Observing active addresses by profitability reveals that the altcoin is not experiencing much selling at the moment.
Typically, when profit investors exceed 25% stake in the network, the likelihood of selling increases. This is because these investors tend to try to make a profit on their holdings. However, as in the case of SHIBWith this dominance being less than 13.5%, investors are not too inclined to sell.
Learn more: How to Buy a Shiba Inu (SHIB) and Everything You Need to Know
This is a good thing for the Shiba Inu price as it suggests a recovery.
SHIB Price Prediction: Recovery After Consolidation
Shiba Inu Trading Price At $0.00001719, the crypto asset’s price is seeing a minimal rebound from the $0.00001473 low. The next resistance for the crypto asset is at $0.00001800, breaking through the level, which would allow an increase to $0.00002903.
SHIB likely to form a consolidation below this level until stronger bullish signals appear. The same could the gathering of coins meme beyond $0.00002093 towards $0.00002267.
Learn more: Shiba Inu (SHIB) Price Prediction 2024/2025/2030
However, if this fails, consolidation could continue between $0.00002093 and $0.00001800, which will likely invalidate the moderate bullish thesis.
Disclaimer
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