Shiba Inu (SHIB) Stuck in Downtrend, Reliant on Bitcoin (BTC) for Recovery

Shiba Inu has been stuck in a persistent downtrend, with recovery attempts consistently failing. The meme coin has struggled to break through key resistance levels

Shiba Inu has struggled to recover from a persistent downtrend, with investors facing ongoing losses and limited support for the meme coin.

As a result, SHIB has become heavily reliant on the performance of Bitcoin for any potential rebound.

Shiba Inu Investors Need Help

In the past month and a half, losses in transactions have outpaced those in profit for Shiba Inu. This reflects the ongoing bearish sentiment, with more investors experiencing losses than gains. Losing transactions have dominated the market, impacting investor confidence and leading to a hesitant approach in participating in network activities.

This cautious behavior among investors has led to lower trading volumes, putting additional pressure on SHIB's price. Until there is a shift in sentiment or a improvement in market conditions, Shiba Inu is likely to face continued downward pressure.

Shiba Inu shares a strong correlation with Bitcoin, with a 0.94 correlation coefficient. This suggests that SHIB tends to follow Bitcoin's price movements, especially if BTC shows strength in the market.

If Bitcoin rallies to break through the crucial $100,000 barrier, it could signal a period of growth for the broader crypto market, including Shiba Inu.

This close relationship with Bitcoin offers Shiba Inu a potential path to recovery. If Bitcoin rallies, it could provide the necessary momentum to lift SHIB from its downtrend. However, SHIB’s reliance on Bitcoin also means that its recovery is contingent on Bitcoin's performance in the coming weeks.

SHIB Price Prediction: Stuck Within A Range

Shiba Inu is currently priced at $0.00001591, remaining stuck below the $0.00001676 resistance for the past week. The coin has endured a month-long downtrend, pushing it to its current price level.

Without a significant shift in market sentiment, SHIB is unlikely to breach this resistance in the short term.

If the bearish market conditions persist, Shiba Inu may continue to consolidate below the $0.00001676 resistance. However, holding above the $0.00001462 support level could provide SHIB with some stability, preventing further downside and allowing for a potential slow recovery if broader market conditions improve.

Should Bitcoin recover and pull Shiba Inu along with it, SHIB could breach the $0.00001676 resistance and rise toward $0.00002000. A successful push above this key level would open the door for further growth, potentially marking the start of a new bullish phase for the meme coin.