Shiba Inu (SHIB) has been showing mixed signals over the past few weeks. SHIB has recently attempted to break through prices, but buying pressure has been slow to follow.
In this situation, an upward movement would depend on the broader market, especially the price resilience of Bitcoin (BTC). If Bitcoin continues its upward trend, Shiba Inu could attempt a recovery rally.
Shiba Inu Needs Support
Shiba Inu's MVRV Longing/Short difference is currently at a 6-month low. This is a key indicator suggesting that short-term holders are experiencing significant profits.
This is a bearish signal for the cryptocurrency, as these investors tend to sell when they see profits. Therefore, the likelihood of selling increases, and if these holders liquidate their positions, Shiba Inu's price could decline.
Such behavior can exert downward pressure on SHIB and limit the possibility of maintaining or expanding recent gains. The lack of strong support from long-term holders combined with massive profit-taking by short-term traders currently destabilizes Shiba Inu's market dynamics.
Shiba Inu's correlation with Bitcoin remains strong, currently positioned at 0.77. This indicates that SHIB tends to move alongside Bitcoin. As the largest cryptocurrency gradually recovers, Shiba Inu could follow suit.
As Bitcoin approaches $90,000, it will provide the necessary momentum for SHIB to continue its recovery.
If Bitcoin breaks through $90,000, it will instill additional confidence in the broader cryptocurrency market. This could provide the momentum for Shiba Inu to break out of its current consolidation phase and surpass key resistance levels.
Shiba Inu Price, Recovery Target
At the time of writing, Shiba Inu is trading at $0.00001296, just above the support line of $0.00001275. This altcoin is attempting to maintain and rebound from this support line, but its ability to maintain this level depends on market conditions.
If Bitcoin continues to rise, Shiba Inu could find support to reach or exceed the $0.00001462 barrier. However, if Bitcoin declines, SHIB may remain at $0.00001275 or drop to $0.00001141 depending on the intensity of bearish pressure.
For this bearish-neutral outlook to be invalidated, Shiba Inu would need to break through the $0.00001462 resistance and convert it into a support line.
A successful rally beyond this level would open the path for SHIB to rise above $0.00001676, potentially signaling the beginning of a stronger uptrend for the meme coin.
