One of the biggest factors driving the recovery will be SHIB's improving ability to follow in the footsteps of Bitcoin (BTC).
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Shiba Inu price is aiming for a recovery to May highs after bouncing off the lows of $0.00001473. The meme coin is no stranger to cryptocurrency market volatility, but the recovery is slower this time around.
The key factor is the low correlation between Shiba Inu and Bitcoin. At the time of writing, Bitcoin is showing signs of recovery, but Shiba Inu may not follow suit as the correlation with BTC is -0.44, which is an improvement from -0.96 a month ago.
A positive correlation means that the asset will move in the same direction as BTC, while a negative correlation means that the asset will move in the opposite direction. This limits Shiba Inu's ability to see a recovery as the asset may struggle when market conditions improve.
Thus, when the correlation becomes positive, we can expect the meme coin to rise.
This idea is already supported by investors who are reducing sales. Analysis of active addresses by profitability shows that at the moment the altcoin is not showing significant sales.
Typically, the likelihood of a sale increases if investors' profits exceed 25% of the network's participation. This is due to the fact that such investors usually try to lock in profits on their assets. However, in the case of SHIB, the dominance is less than 13.5%, so investors are in no hurry to sell the asset.