Shiba Inu’s price has decoupled from the broader crypto market over the mid-term. At press time on Monday, April 10, the asset shared a negative correlation of 0.36 and 0.27 with Bitcoin and Ethereum respectively.
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Historically, Q2 has proven to be investor-friendly for Bitcoin holders. In fact, as analyzed in an article recently, BTC has fetched triple-digit returns during this quarter on a couple of instances. So, with a broader recovery expected in this quarter, Shiba Inu’s current correlation dynamics do not paint a bullish picture.
Alongside, participants across the short, mid, and long term—i.e. holders, traders, and cruisers—have all been exiting the ecosystem. This has an added burden on the shoulders of SHIB. Data from IntoTheBlock revealed that 0.97% of investors holding for more than 1 year, 6.54% of 1-12 month investors, and 7.7% of less than 1-month investors have bid adieu to Shiba Inu over the past 30 days.
In turn, the aforementioned factors have been making it difficult for SHIB to break above its horizontal consolidation range. As shown below, Shiba Inu has made multiple attempts to surpass that range. However, it hasn’t been successful in doing so.
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All hope is not lost for Shiba Inu
That being said, all hope is not lost for SHIB. The ones remaining in the ecosystem seem to be bullish and are accumulating SHIB. Leaving aside the 12-hour period, over the short-term, the buyer-seller trades difference has been in green, bringing to light the change in sentiment. Thus, it can be contended that bulls are fighting hard to change the state of affairs.
Here, it should also be noted that SHIB’s RSI has been gradually inclining. In fact, at press time, it had just overtaken its SMA, bringing to light the blooming buy-side momentum. Parallelly, the short-term correlation has also started becoming positive. With Bitcoin, Shiba Inu shared a 30-day correlation of 0.24, while with Ethereum, its number stood at 0.43. Thus, if improvements are augmented going forward, then the tables could turn towards the bullish side for SHIB.
Also Read – Shiba Inu: ‘Puppynet’ Processes 1 Million Transactions, Wallets Surpass 200,000
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