Shiba Inu’s adoption has been on the rise over the past few weeks. Right from bagging exchange listings to being accepted as a means of payment, SHIB has managed to tick all crucial boxes.
Its price has, however, not been very receptive the same. Over the past week, the second-largest meme token has shed close to 9% of its value. At press time, SHIB was merely trading at $0.00001076.
As highlighted in a recent article, Shiba Inu would find it challenging to progress on its price front until 14 June, for it is currently in its ‘waning’ phase. The same was speculated using the lunar phases indicator.
Nonetheless, with the broader market depicting signs of recovery, there seemed to be a glimmer of hope back then. Over the last couple of days, however, its correlation with Bitcoin has noted a freefall. From hovering around 0.95 at the beginning of the month, the number has stooped down to 0.37 now, bringing to light the fading relationship between the two coins.
This means that even if Bitcoin and co. witness an uptrend in the coming days, SHIB would find it a task to drag itself alongside. However, the falling correlation would end up becoming a blessing in disguise for Shiba Inu if the bears re-enter and dominate in the broader market.
Are there revival hopes for Shiba Inu?
The state of underlying networks plays a crucial role in creating a directional bias for the price. As far as Shiba Inu is concerned, this landscape is currently dim. Consider this – Towards the end of May, the number of active and new addresses noted a slight bump. However, it has considerably depleted since then and is currently flat.
Typically, an address is considered to be active when it becomes a direct participant in a successful transaction and new if it freshly joins the network. More often than not, the higher the number, the better, for it indicates higher participation.
Thus, at this point, the state of the network doesn’t provide a safety net for Shiba Inu and keeping the current broader market trend and falling correlation in mind, it doesn’t look like Shiba Inu’s organic uptrend phase would commence anytime soon. Having said that, it should also be noted that the doors for a dead cat bounce aren’t shut completely and the meme token might end up briefly rising before prolonging its sluggish phase.