Shiba Inu’s price is still struggling after a 47% drop in June that pushed it to a four-month low. However, the market is improving, and SHIB’s growing correlation with Bitcoin is helping.
SHIB holders are not selling much, which shows their continued support. With these positive factors, SHIB’s price could increase soon, especially as it starts to follow Bitcoin’s trends more closely.
Shiba Inu’s Potential for Price Recovery Amid Market Volatility
Shiba Inu’s price is looking to reclaim its May highs after bouncing back from the lows of $0.00001473. Although the meme coin is familiar with the crypto market’s volatility, its recovery this time is slower.
A key factor behind this is the low correlation Shiba Inu shares with Bitcoin. Currently, Bitcoin is showing strong signs of recovery, but SHIB may not experience the same since its correlation with BTC stands at -0.44, an improvement from -0.96 a month ago. A positive correlation means SHIB would follow BTC’s trends, while a negative correlation suggests the opposite. This low correlation is hindering Shiba Inu’s ability to recover when the broader market improves.
Investors, however, are already supporting the notion of recovery by scaling back on selling. Observing active addresses by profitability reveals that SHIB is not seeing much selling activity at the moment. Generally, when investors in profit exceed 25% participation on the network, the probability of selling increases as they attempt to book profits.
Shiba Inu Active Addresses by Profitability. Source: IntoTheBlock
However, for SHIB, this dominance is less than 13.5%, indicating that investors are not keen on selling. This reduced selling pressure is a positive sign for Shiba Inu’s price, hinting at a potential recovery.
Shiba Inu’s Price Movement and Potential Resistance Levels
Shiba Inu’s price is currently trading at $0.00001719, showing minimal bounce back from the lows of $0.00001473. The next resistance level for the crypto asset is at $0.00001800; breaching this level could enable a rise to $0.00002903.
SHIB is likely to form consolidation below this level until stronger bullish signals emerge. If these signals occur, the meme coin could rally beyond $0.00002093 towards $0.00002267.
Shiba Inu Price Analysis. Source: TradingView
However, if these bullish signals fail to materialize, the consolidation could continue between $0.00002093 and $0.00001800, potentially invalidating the moderate bullish outlook.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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