Shiba Inu (SHIB) has experienced significant volatility, declining 16% in the past 24 hours.
Despite the continued upward trend of Bitcoin (BTC), Shiba Inu has failed to break through an important resistance level. As a result, the altcoin has been unable to secure the $0.00003000 support level. This failure has increased the uncertainty surrounding SHIB's future direction.
Shiba Inu Fails to Maintain Support Level
The correlation between Shiba Inu and Bitcoin has noticeably decreased to 0.45 last week. This decrease is concerning, as Bitcoin is nearing $100,000 and is expected to see further growth.
Typically, cryptocurrencies like SHIB follow the positive correlation with Bitcoin, but the weakening of this connection has raised doubts about Shiba Inu's ability to capitalize on Bitcoin's upward movements.
The weakening correlation suggests that if Bitcoin continues to rise, Shiba Inu may struggle to break through key resistance levels. Investors now face the potential that SHIB may not be able to keep up with BTC, leading to the altcoin stagnating or remaining in a downtrend, limiting potential gains.
Despite the recent challenges, Shiba Inu has shown steady adoption growth. The current adoption rate is at 46%, a 5-month high, indicating significant interest from new investors.
This is particularly noteworthy, as SHIB saw an upward trend last week. The continued participation of new users can provide some support for the coin.
If the adoption growth trend continues, it may offset some of the bearish market signals. The influx of new investors could contribute to a broader market rebound and provide an opportunity for Shiba Inu to recover.
Shiba Inu Price Prediction: Will the $0.00002267 Resistance Level Be Broken?
Shiba Inu's price has declined 16% in the past 24 hours, currently at $0.00002698. This drop has pushed the altcoin below the previous support level of $0.00002976. Failing to maintain this key support level suggests a potential shift in market sentiment, which could lead to further price weakness.
The altcoin is now expected to find support around the $0.00002267 level. This area could act as a temporary bottom, and investors may choose to realize profits amid the ongoing correction. This correction phase could reduce volatility, but may also delay SHIB's price recovery.
If Shiba Inu can reclaim the $0.00002976 support level, a rally could be triggered. This would open the door for a potential retest of the 5-month-old resistance at $0.00003306. Breaching this level would invalidate the current bearish outlook and signal a return to an uptrend.
