Shiba Inu’s [SHIB] price trajectory has gradually started deviating from that of Bitcoin’s. In fact, the token’s indifferent behavior started becoming even more prominent since the beginning of this year.
Consider this – Shiba Inu shared a 98% correlation with Bitcoin towards the end of January. However now, the number has already tumbled down to 64%.
So now, with Bitcoin price not showing any definitive signs of a rally, the fading correlation could end up being a blessing for SHIB. If Bitcoin’s sluggish phase continues and the state of this metric keeps deteriorating, then Shiba Inu could end up rallying.
Best case scenario for Shiba Inu – A parabolic recovery?
In October last year, SHIB’s price climbed up the ladder by over 1000% and attained the $0.00008854 peak. Post that, nevertheless, it started creating lower lows and found solace only around $0.00002. Right after, it did initiate an uptrend, but couldn’t keep up with it. After correcting throughout February and until now in March, the coin stood at the door of $0.000022 at the time of press.
The best-case scenario would obviously mean Shiba Inu attempting a parabolic recovery and re-attainting its own already set highs. For that to materialize, Shiba Inu would have to start taking steps in the northbound direction.
To re-enter into the troposphere of the parabolic setup, SHIB would have to first incline by 28.2% from its current price levels. Post that, if the buy-side bias gets even more intense and participants all across the spectrum—right from whales to retail players—do their purchasing job well, SHIB could commence its “higher highs” phase and go on and achieve October’s levels. In such a scenario, the ascent would be more than 200%.
Knock knock, reality check
During last year’s rally phase, the sky was the limit for Shiba Inu. It kept registering consecutive long green candles on a daily basis, thanks to the favorable momentum.
For now, the said rally and targets do seem to be far-fetched but ain’t completely unachievable. Shiba Inu has managed to surprise the community in the past and has the potential to do so even now.
Nevertheless, as highlighted in an article yesterday, most of the stars are non-aligned in Shiba Inu’s favor from a technical perspective at the moment. So, the short-term upside remains to be capped, until positive momentum finds its way back into the Shiba Inu market.