Shiba Inu (SHIBUSD) is catching the eye of many crypto enthusiasts as it shows signs of potential growth. A key driver of this optimism is SHIB’s improving correlation with Bitcoin (BTCUSD), which might set the stage for a stronger rebound.
Investor Optimism for Shiba Inu
After hitting a low of $0.00001473, Shiba Inu is on a mission to reclaim its May highs. Despite its infamous volatility, this recovery has been more gradual than previous ones. One reason for this slower pace is SHIB’s historically low correlation with Bitcoin.
Right now, Bitcoin is on an upward trend, but Shiba Inu might not benefit immediately due to its current correlation with BTC, which is -0.44. This is actually a significant improvement from -0.96 a month ago. In the crypto world, a positive correlation means an asset typically moves in tandem with Bitcoin, while a negative correlation indicates the opposite.
This negative correlation has been a stumbling block for Shiba Inu, making it harder to ride the broader market recovery wave. However, as this correlation shifts towards positive territory, SHIB could start mirroring Bitcoin’s upward movements more closely.
Market Trends and Investor Sentiment
There’s a noticeable shift in investor behavior that supports this potential change. Many Shiba Inu investors have been holding back on selling their assets. By looking at active addresses by profitability, it’s clear that SHIB isn’t facing heavy selling pressure right now.
Usually, when more than 25% of investors are in profit, there’s a higher chance of selling as they aim to lock in their gains. But with SHIB, this figure is under 13.5%, suggesting that investors are not rushing to sell their holdings.
Future Outlook and Price Predictions
If SHIB’s correlation with Bitcoin keeps improving, we could see Shiba Inu break out of its current consolidation phase and make significant gains. On the other hand, if the correlation stays low, the price might remain between $0.00002093 and $0.00001800, which would dampen the moderate bullish outlook.
In summary, Shiba Inu’s growing correlation with Bitcoin is a critical factor to watch in the coming days. As this relationship evolves, it could trigger a recovery for SHIB, bringing it closer to its previous highs. Investors remain cautiously optimistic, hoping the meme coin will follow Bitcoin’s path to a more robust recovery.
