SHIB Decouples from Bitcoin, Eyes 200% Surge
In A Nutshell
The cryptocurrency Shiba Inu (SHIB) has shown signs of a possible 200% price increase following a decrease in its correlation with Bitcoin (BTC), according to a recent analysis. This shift comes amidst differing price movements between the two, with Bitcoin witnessing a price rise and SHIB experiencing a slight decline. Key indicators, including the Exponential Moving Average (EMA) and the Money Flow Index (MFI), suggest bullish trends for SHIB in both the short and long term.
Decoupling From Bitcoin: A New Path for SHIB
Historically, SHIB’s price movements have closely mirrored those of Bitcoin, with a correlation coefficient nearing 0.94 in previous months. However, this correlation has weakened to 0.89, signaling a potential divergence in the price paths of SHIB and Bitcoin. This decoupling could be advantageous for SHIB as capital may begin to flow from Bitcoin to altcoins, including SHIB, particularly if Bitcoin enters a bearish phase.
Technical Indicators Point to Bullish Trends
Technical analysis reveals a bullish outlook for SHIB. The 50-day EMA has crossed over the 200-day EMA, a widely recognized bullish signal. Moreover, the current price of SHIB stands well above these EMAs, further supporting the potential for upward movement. The Fibonacci retracement levels indicate that SHIB could reach up to $0.00013 in a bullish scenario, surpassing a 200% price increase. In the shorter term, the MFI suggests an imminent rise, hinting at strong capital inflow into SHIB.
Comparative Analysis with Bitcoin
While SHIB may outperform Bitcoin in the near term, it’s important to note the substantial difference in their investor base. Bitcoin’s holders number over 53 million, compared to SHIB’s 1.39 million, underscoring Bitcoin’s stronger long-term market confidence. Nevertheless, SHIB’s potential for significant short to medium-term gains remains a focal point for investors and traders alike.
Our Take
The emerging divergence between SHIB and Bitcoin presents a compelling narrative in the cryptocurrency market. SHIB’s potential to decouple from Bitcoin and chart its own course is underscored by favorable technical indicators and market dynamics. While the long-term dominance of Bitcoin is undisputed, SHIB’s anticipated short to medium-term performance highlights the dynamic and evolving nature of cryptocurrency markets. Investors should monitor these developments closely, considering both the risks and opportunities that such volatile assets present.
Sources: IntoTheBlock, TradingView, Santiment
