#AltcoinAnalyses  Shiba Inu (SHIB) Price Is Highly Dependent on Bitcoin

Shiba Inu has been sending mixed signals in recent weeks. The meme coin is trying to make a breakout, but its efforts are largely dependent on investor support.

Unfortunately, this support has been weak recently, and SHIB has been forced to rely on the broader market, particularly Bitcoin, for direction. If Bitcoin continues its rally, Shiba Inu may have a chance to stage a recovery rally.

Shiba Inu Needs Support

Shiba Inu’s MVRV Long/Short Spread is currently at a 6-month low, a key indicator that short-term holders are making significant profits.

This is a negative sign for the cryptocurrency, as these investors tend to sell when they are in profit. As a result, the likelihood of selling is higher, and Shiba Inu’s price could take a hit as these holders close out their positions.

This behavior could put downward pressure on SHIB, limiting its chances of maintaining or building on its recent gains. The lack of strong support from long-term holders, combined with large profit-taking from short-term traders, is currently creating an unstable market dynamic for Shiba Inu.

The correlation between Shiba Inu and Bitcoin remains strong, currently at 0.77. This suggests that SHIB is likely to move in tandem with Bitcoin, and as the largest cryptocurrency slowly recovers, Shiba Inu could follow suit.

A potential rally for Bitcoin towards $90,000 could provide the necessary support for SHIB to continue its own recovery.

If Bitcoin breaks the $90,000 level, it would instill more confidence in the broader cryptocurrency market. This could provide the momentum needed to break through key resistance levels, bringing Shiba Inu out of its current price stagnation phase.

SHIB Price Targets Recovery

Shiba Inu’s price is trading at $0.00001296, just above the support level of $0.00001275. The altcoin is attempting to hold and bounce off this support level, but its ability to hold on to this level will depend on market conditions.

If Bitcoin rises further, Shiba Inu could find some support to reach or break the $0.00001462 barrier. However, if Bitcoin experiences a decline, SHIB is likely to continue consolidating around $0.00001275 or could drop to $0.00001141 depending on the strength of the bearish pressure.

The only way this bearish-neutral outlook can be invalidated is if Shiba Inu breaks the $0.00001462 resistance and turns it into support.

A successful rally above this level could pave the way for SHIB to rise to $0.00001676 and beyond, signaling the start of a more bullish trend for the meme coin.