2024-04-24 06:09:11
- The correlation between cryptocurrencies fell after prices recently moved in different directions.
- A thorough analysis showed that SHIB could reach $0.00013.
Shiba Inu [SHIB] warm start of March, assured that tokens correlation with bitcoins [BTC] it was strong. But since SHIB lost its lucky break, the token and BTC have moved in opposite directions.
According to IntoTheBlock, SHIB price correlation with Bitcoin it hasn’t been very unified. About a month and a few weeks ago, the 30-day correlation was almost 0.94. However, AMBCrypto noted that the metric had fallen to 0.89 at press time.
The correlation varies from -1 to 1. Values from -1 to 0 mean that the prices of the cryptocurrencies involved are negatively skewed. On the other hand, a reading close to 1 suggests that the assets involved are moving in a similar direction.
Will capital flow from BTC to Memecoin?
Over the past 30 days, Bitcoin price has increased while SHIB recorded a decrease of 5.72%. However, memecoin’s performance may be in its favor.
In the last articles we reported that the BTC capital could begin flowing into altcoins. If this were the case, SHIB’s decreasing correlation could deviate of Bitcoin’s potential downtrend.
If this is the situation, what heights can the token reach? On the daily chart, the Exponential Moving Average (EMA) showed a long-term bullish trend for SHIB.
At press time, the 50 EMA (blue) had crossed the 200 EMA (yellow), and the price of the token was much higher than both EMAs. With this position, the token price may not fall below $0.000010 this cycle.
Instead, the Fibonacci indicator suggested that SHIB could reach $0.00013 i height
of the bull market. This means that the price still has the potential to rise over 200%.
In the short term, SHIB price may reach $0.000030 again based on indications from Money Flow Index (MFI). At the time of writing, MFI was close to 60.00, indicating that a large amount of capital was flowing into the token.
Both assets share the glory.
If this continues, SHIB could outperform BTC in the coming weeks. Despite its potential to outperform BTC in the near term, SHIB may never approach the number of holders with Bitcoin in their portfolio.
According to Santiment, the total amount of BTC holders It was 53.63 million. Shiba Inu, on the other hand, had 1.39 million.
Furthermore, simply interpreting this means that many market participants believe in the long-term potential of Bitcoin over SHIB.
Realistically, here it is SHIB market value in terms of BTC
However, this does not mean that SHIB’s long-term potential is not worthy of attention. However, in the coming years, the price action may not be able to match that of Bitcoin.
In the short and medium term this may not be the case as the SHIB price may rise much higher.
This is an automatic translation of our English version.
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