Shiba Inu (SHIB) has experienced significant volatility recently, with its price falling by 16% in just 24 hours.
Despite the ongoing bullish momentum in Bitcoin (BTC), Shiba Inu has failed to breach a critical resistance level, which kept the altcoin from securing $0.00003000 as support. This failure has led to a surge of uncertainty regarding SHIB’s future direction.
Shiba Inu Fails to Hold Support
Shiba Inu’s correlation with Bitcoin has been notably decreasing in the past week, currently sitting at 0.45. This decline is concerning as Bitcoin hovers around the $100,000 mark, with expectations for further growth.
Typically, cryptocurrencies like SHIB follow Bitcoin’s lead due to their positive correlation. However, with this growing disconnection, Shiba Inu’s ability to capitalize on Bitcoin’s bullish movement is now in question.
The fading correlation suggests that Shiba Inu may struggle to gain traction and push past key resistance levels if Bitcoin continues to surge. Investors are now faced with the possibility that SHIB’s failure to follow BTC could leave the altcoin in a stagnant or downward trend, limiting potential gains.
Despite recent struggles, Shiba Inu has seen a steady increase in adoption. Its adoption rate is currently at a five-month high of 46%, indicating significant interest from new investors.
This is particularly notable as SHIB was on the rise just last week, and continued participation from new users could provide some support to the coin.
If this trend of increasing adoption persists, it could counteract some of the bearish market cues. The participation of new investors could contribute to a broader market rebound, giving Shiba Inu a chance to recover.
SHIB Price Prediction: Breaking Barriers
Shiba Inu’s price dropped by 16% over the last 24 hours, now at $0.00002698. This decline has pushed the altcoin below its previous support level of $0.00002976. The failure to hold this key support indicates a potential shift in market sentiment, which may lead to further price weakness.
The altcoin is now expected to consolidate above the $0.00002267 support level. This zone could serve as a temporary floor, with investors possibly opting to take profits amid the ongoing pullback. This consolidation phase might result in reduced volatility but could also delay any price recovery for SHIB.
If Shiba Inu manages to reclaim the $0.00002976 support level, a rally could be triggered. This would pave the way for a potential retest of the five-month-old resistance at $0.00003306. A breach above this level would invalidate the current bearish outlook and could signal a return to an uptrend.
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