Shiba Inu (SHIB) Price Analysis, Bitcoin Correlation and Potential for Recovery

Shiba Inu (SHIB) price is poised to reach the highs of May after the meme coin rebounded from its low point of $0.00001473. The meme coin is no stranger to the ups and downs of the crypto market, but the current rebound is not as swift. One of the main reasons for this is the minimal correlation between Shiba Inu shares and Bitcoin. Currently, Bitcoin is showing promising signs of bouncing back, while SHIB may not experience the same level of recovery due to its correlation with BTC, which has improved from -0.96 to -0.44 over the past month.

If there is a positive correlation, it indicates that the asset will move in the same direction as BTC. On the other hand, a negative correlation suggests that the asset will move in the opposite direction. Shiba Inu’s potential for recovery is being hindered, as it may face challenges even when the overall market improves. Therefore, when the correlation becomes positive, one can anticipate growth for the meme coin.

Investors have been steadily reducing their selling activity for quite some time now, which further reinforces this idea. By analyzing the active addresses based on profitability, it can be observed that the altcoin is currently experiencing minimal selling activity. Typically, when investors who are making a profit surpass a 25% participation rate on the network, the likelihood of selling increases. This is because these investors typically aim to secure profits on their investments. However, given that SHIB’s dominance is less than 13.5%, investors are not particularly eager to sell.

The price of Shiba Inu, currently at $0.00001719, is experiencing a slight recovery from its previous low of $0.00001473. There is a significant resistance level for the crypto asset at $0.00001800. If this level is surpassed, it could potentially lead to a rise to $0.00002903. It is expected that SHIB will consolidate at this level until stronger bullish signals emerge. The meme coin can rally from $0.00002093 to $0.00002267.

Price Recovery and Market Dynamics

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Shiba Inu has shown resilience in its recent rebound from a low of $0.00001473, edging closer to its May highs. Despite facing volatility typical of the crypto market, its recovery has been gradual rather than swift. The minimal correlation with Bitcoin, which has improved from -0.96 to -0.44 over the past month, poses both challenges and opportunities for Shiba Inu’s recovery. While Bitcoin shows signs of bouncing back, SHIB’s path to full recovery may not mirror Bitcoin’s due to this evolving correlation.

Shiba Inu (SHIB) Price: Investor Behavior and Market Outlook

Despite the fact that profitability requirements have been attained, investor attitude remains cautiously optimistic, indicating that there is a reluctance to sell even though selling activity has stabilized. When active addresses indicate minimal selling pressure and dominance is below 13.5%, the market attitude tends toward consolidation rather than a spectacular sell-off. This is because the market is suggesting that there is minimal selling pressure.

A critical resistance level is located around $0.00001800, and the current price of Shiba Inu at the time of writing, which is $0.00001812, represents a moderate rebound. If additional bullish signs are received, SHIB might be propelled into higher levels, potentially hitting $0.00002903. If, on the other hand, resistance levels are overcome and larger market conditions are favourable to meme coins, then prolonged bullish momentum will be realized. As the correlation between Bitcoin and SHIB continues to impact the dynamics of the market, investors should keep a careful eye on Bitcoin’s moves.