Key Points
- Correlation between cryptocurrencies has dropped, as prices have recently diverged.
- An analysis suggests that Shiba Inu (SHIB) could potentially reach $0.00013.
Shiba Inu’s [SHIB] strong start to March resulted in a solid correlation with Bitcoin [BTC]. However, as SHIB’s momentum slowed, the two cryptocurrencies began to diverge in their price movements.
Data from IntoTheBlock indicates that the correlation between SHIB’s price and Bitcoin is not tightly linked. A little over a month ago, the 30-day correlation was nearly 0.94, but it has since dropped to 0.89.
Correlation and Cryptocurrency Prices
Correlation values range from -1 to 1. Negative values suggest a negative skew in the prices of the involved cryptocurrencies, while a value close to 1 indicates that the assets are moving in a similar direction.
Over the past 30 days, while Bitcoin’s price has risen, SHIB has seen a 5.72% decrease. However, this performance could potentially work in the memecoin’s favor.
Recent reports suggest that capital from BTC might start shifting towards altcoins. If this happens, SHIB’s declining correlation could diverge from Bitcoin’s potential bearish trend.
Potential Heights for SHIB
So, what heights could SHIB reach if this is the case? The Exponential Moving Average (EMA) indicates a long-term bullish trend for SHIB. Currently, the 50 EMA has crossed over the 200 EMA, and SHIB’s price is significantly higher than both EMAs.
This position suggests that SHIB’s price might not fall below $0.000010 this cycle. Instead, the Fibonacci indicator suggests that SHIB could potentially reach $0.00013 at the peak of the bull market, indicating a potential surge of over 200%.
In the short term, the Money Flow Index (MFI) suggests that SHIB’s price could revisit $0.000030. The MFI is currently close to 60.00, indicating a significant inflow of capital into the token.
If this trend continues, SHIB might outperform BTC in the coming weeks. However, despite the potential to outpace BTC in the short term, SHIB might never reach the same number of holders as Bitcoin.
Data from Santiment shows that the total number of BTC holders is 53.63 million, while Shiba Inu has 1.39 million holders. This suggests that many market participants believe in the long-term potential of Bitcoin over SHIB.
While SHIB’s long-term potential should not be overlooked, its price action may not be able to match Bitcoin’s in the coming years. However, in the short to mid-term, SHIB’s price could potentially climb significantly higher.
