Shiba Inu (SHIB) price is likely to rise in the coming days as the meme coin is getting support from multiple directions.
One of the biggest catalysts for a recovery will be SHIB’s increasing ability to follow in the footsteps of Bitcoin (BTC).
Shiba Inu Investors Remain Optimistic
Shiba Inu price looks set to reclaim its May highs as the meme coin bounces back from its lows of $0.00001473. The meme coin is no stranger to cryptocurrency market volatility, but this time the recovery is not as quick.
The main factor behind this is the low correlation between Shiba Inu and Bitcoin. At the time of writing, Bitcoin is showing strong signs of recovery, but Shiba Inu may not see the same as its correlation with Bitcoin stands at -0.44, an improvement from -0.96 a month ago.
A positive correlation indicates that the asset will follow in BTC’s footsteps, while a negative correlation indicates the opposite. This hinders Shiba Inu’s ability to observe a recovery, as SHIB may struggle when the broader market improves.
Thus, when the correlation turns positive, we can expect the meme coin to grow.
Investors have already bought into this idea, having been cutting back on selling for a long time now. Monitoring active addresses by profitability reveals that the altcoin is not seeing much selling at the moment.
Generally, when investors in profit exceed 25% of the network’s participation, the probability of selling increases. This is because these investors tend to try to make profits on their holdings. However, since this dominance in the case of SHIB is less than 13.5%, investors are not very keen on selling.
Read more: How to Buy Shiba Inu (SHIB) and Everything You Need to Know
This is good for the Shiba Inu price because it indicates a recovery.
SHIB Price Prediction: Recovery After Consolidation
Shiba Inu price is trading at $0.00001719, witnessing a slight bounce from the lows of $0.00001473. The next resistance for the crypto asset lies at $0.00001800, a break above which would allow an upward move to $0.00002903.
SHIB is likely to form at this level until stronger bullish signals emerge. The same could apply to the meme coin recovering above $0.00002093 towards $0.00002267.
Read more: Shiba Inu (SHIB) Price Prediction 2024/2025/2030
However, if this fails, consolidation could continue between $0.00002093 and $0.00001800. This is likely to invalidate the moderate bullish hypothesis.
Disclaimer
In accordance with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult a professional before making any financial decisions. Please note that our Terms & Conditions, Privacy Policy and Disclaimer have been updated.