Shiba Inu’s performance after June’s 47% decline and closer relationship with Bitcoin is encouraging despite the low selling intensity of SHIB tokens.
The Shiba Inu (SHIB) token could increase in the following days, thanks to support from various sources for the meme coin.
The proximity of its market price to Bitcoin appears to have emerged as one of the main reasons for Shiba Inu’s recovery.
Despite Reversals for Shiba Inu (SHIB), Investor Enthusiasm Remains Buoyant
Shiba Inu looks to revisit its May levels after staging a recovery from the $0.00001473, stabilizing the known crypto market fluctuations successfully with a steadier upswing this time.
A major driver of this trend is the diminished association of Shiba Inu with Bitcoin. At the time of writing, Bitcoin seems to be in good standing for a V-shaped recovery, while SHIB may not, as its correlation with BTC has now increased to -0.444.
The bearish relationship restrains Shiba Inu’s ability to rebound and may even be adversely affected if the market bounces back.
Hence, an increase in the R-squared value suggests that the meme coin has more upside potential in the future.
This sentiment is supported by investors who have significantly scaled down their selling activity recently. Based on the active addresses and profitability, there is a lack of selling pressure on the altcoin at the moment.
Normally, when more than a quarter of shareholders are in profit, there is a tendency to sell to realize those profits. However, at the moment, investors do not have much desire to sell.
Shiba Inu Price Prediction: Key Levels to Watch
As of now, Shiba Inu is trading at $0. 00001719, which is still near its recent low of $0.00001473. The next level of resistance for the cryptocurrency is at $0.00001800; if this is exceeded, then a transition to $0.00002903
There is likely to be a period of accumulation below this level until further bullish cues come in that could propel SHIB back above $0.00002267 for the meme coin.
If this fails, consolidation could remain stagnant between $0.00002093 and $0.00001800, which may offset the moderate bullish outlook.
Disclaimer: Cryptocurrency investments are considered high-risk and may result in a lack of capital; the facts provided are widespread, and beginners are not advised to spend money on shares.
