As the cryptocurrency market experiences an uptrend, noteworthy developments continue to unfold. Accordingly, Shiba Inu (SHIB) may be seeking an escape from its downtrend, but not in the traditional sense. Mixed signals from on-chain data in the memecoin sector could affect its price movement. So, what can we expect in the coming period? Let’s examine together.
What’s Happening with Shiba Inu?
Shiba Inu’s price might not follow the path of large wallet holders as their assets decrease. At the beginning of the month, the total number of large addresses holding between $100,000 and $10 million dropped by 27%. The ongoing decline in Shiba Inu’s price is one of the main reasons whale investors are giving up.
As a result, the effects are currently somewhat weaker than usual. The anticipated rise in the Ethereum ecosystem did not occur following the introduction of Ethereum ETF funds, leading to significant selling pressure on SHIB.
However, Bitcoin’s influence on the memecoin is currently quite strong. SHIB’s correlation with Bitcoin, which recovered from negative at the beginning of August, is now recorded at 0.86. A strong correlation indicates that Shiba Inu is likely to follow the path set by Bitcoin. As the latter observes a gradual recovery, the memecoin project also has a chance to record an uptrend.
SHIB Chart Analysis
Despite the upward trend in the correlation coefficient data, Shiba Inu’s price may not rise. The reason behind this is the mixed signals from the indicators mentioned above, which could keep SHIB’s price consolidated below the $0.00001473 resistance.
If the sideways movement continues, the memecoin sector might have a chance to break the downtrend line. This development could revive some missing confidence among SHIB holders, which would be key to recording a recovery. However, if the resistance is broken, Shiba Inu’s price could record an uptrend that sends it to the $0.00001500 level and beyond. This would invalidate the bearish thesis and allow SHIB’s price to return to the $0.00002000 level.
