Shiba Inu (SHIB) price could move higher in the next few days as this meme coin receives support from many sides.
One of the biggest recovery factors will be SHIB's improved ability to follow Bitcoin (BTC).
Shiba Inu investors remain optimistic
The Shiba Inu price is attempting to reclaim May highs as the meme coin rebounded from lows of $0.00001473. Meme coin is no stranger to the volatility of the cryptocurrency market, but this recovery is not as fast as the last.
A major factor behind this is the low correlation between Shiba Inu and Bitcoin. At the time of writing, Bitcoin is showing signs of a strong recovery, but SHIB may not see the same as the correlation with BTC is currently -0.44, an improvement from -0.96 a month ago .
Positive correlation means the asset will follow BTC, while negative correlation suggests the opposite. This hinders the Shiba Inu's ability to recover, as when the broader market improves, SHIB may struggle.
Correlation between Shiba Inu and Bitcoin | Source: TradingView
Therefore, when correlation returns to positive levels, growth can be expected for this meme coin.
The concept has been supported by investors, who have eased selling pressure over the long term. A look at the addresses operating in profit shows that this altcoin is not currently seeing many selling transactions.
Usually, when an investor has a profit of over 25% in the network, the ability to sell will increase. This is because these investors tend to take profits from their holdings. However, in the case of SHIB, this dominance is less than 13.5%, so investors are not too interested in selling.
Source: IntoTheBlock
This is good for Shiba Inu prices as it hints at a recovery.
SHIB price prediction: Recovery after accumulation
Shiba Inu price is trading at $0.00001719, observing a slight recovery from the low of $0.00001473. The next resistance for the cryptocurrency is $0.00001800, which, if surpassed, would facilitate a rally to $0.00002903.
SHIB/USDT Daily Chart | Source: TradingView
SHIB is likely to form accumulation below this level until there are stronger bullish signals. This could lead to a rally above $0.00002093 towards $0.00002267.
However, if it fails, the price may continue to trade between $0.00002093 and $0.00001800 for a while longer.
Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
