The price of Shiba Inu (SHIB) has been struggling to break through the $0.00001961 level since mid-June, and several attempts at this resistance level have failed. There have also been failed attempts in the past 7 days.
As Bitcoin is increasingly likely to form a new all-time high with a strong rally, the price correlation between Shiba Inu and Bitcoin appears to be breaking down. If SHIB fails to keep up with the rise in Bitcoin, the short-term outlook is likely to be gloomy.
Shiba Inu investors' sentiment remains positive
Shiba Inu, whose correlation with Bitcoin has now dropped significantly to 0.51, indicates a weakening of the linkage between the two assets. As the correlation with Bitcoin decreases, Shiba Inu's growth potential may be limited, which could negatively impact its price trajectory. With Bitcoin nearing its historical high, this decoupling suggests that Shiba Inu may not be able to share in the market's upward momentum, reducing the likelihood of a bullish run.
While Bitcoin's bullish outlook generally affects altcoins, the reduced dependence of Shiba Inu on Bitcoin's price signals introduces uncertainty. If this divergence persists, Shiba Inu may struggle to find significant support or upward momentum.
Read more: How to Buy Shiba Inu (SHIB) - Everything You Need to Know
Despite the current price challenges, the Shiba Inu investor base is showing positive signals, with a notable transition from short-term holders (STH) to long-term holders (LTH). Approximately 4% of holders have transitioned to the LTH category, holding SHIB for over a year. This transition suggests that investors maintain confidence in Shiba Inu's potential despite the recent price fluctuations.
The transition from STH to LTH demonstrates a fundamental conviction that can stabilize Shiba Inu's price amid market volatility. As more investors decide to hold Shiba Inu for the long term, the asset may experience reduced selling pressure, which could prevent more significant declines. While the short-term gains may be limited, this transition supports a more sustainable growth outlook.
SHIB Price Prediction: Failure to Rally Expected
Shiba Inu's price has declined by 11% this week, but it remains above the $0.00001676 local support level. The failure to break through the $0.00001961 and $0.00002093 resistance levels has limited potential gains. If these barriers are not overcome, Shiba Inu may continue to struggle with upward momentum, and short-term gains may be constrained.
Considering the mixed signals from the factors mentioned earlier, Shiba Inu may remain in a corrective phase below $0.00001961. With both investor confidence and caution being exhibited, the meme coin's price movement may be range-bound in the short term. This correction period could provide time for the asset to stabilize before attempting further upside.
Read more: Shiba Inu (SHIB) Price Prediction 2024/2025/2030
If Shiba Inu falls below the $0.00001676 support level, it may test the next support at $0.00001462. A breakout from here could see Shiba Inu's price decline further to $0.00001271, indicating a more significant pullback for the meme coin.
