Shiba Inu decouples from Bitcoin as its price shows independent movement from the leading cryptocurrency. Though historically Shiba Inu moved in tandem with Bitcoin, the SHIB-to-Bitcoin correlation has fallen to about 0.51. It goes to say that SHIB will most likely be driven more by its own market dynamics than changes in Bitcoin. At the current price of $0.00001845, while the 24-hour trading volume has reached $562.5 million, Shiba Inu is gradually forging its identity in the market.
Technical Patterns
Recent trading ranges see Shiba Inu resistant at $0.00001845, unable to break above decisively since mid-2024. In the same way, there is stiff support between $0.00000780 and $0.00000850, suggesting that this is where the range buyers load up cheaply. Currently, about 55.61% of SHIB holders are “in the money,” a situation where they have bought lower than the current rate-meaning a good base of investors unlikely to sell at a loss
Increasing Long-Term Holder Base
The growth of the long-term holder base is one crucial factor that makes Shiba Inu somewhat independent of Bitcoin. At present, about 4% of SHIB holders held their investments so far for more extended periods, underscoring growing investor confidence. With fewer holders selling on minor market movements, SHIB’s price seems more immune to such ups and downs. Stability is further ensured by the high volume traded, indicating substantial ongoing interest in the market.
Risk Factors and Future Prospects
Decoupling from Bitcoin by Shiba Inu has its pros and cons. On one hand, the continuity of supports by SHIB could signal further independence and stability in the coin. However, it needs to break the resistance at $0.00001845 for upward momentum. Its inability might make SHIB’s price test lower levels close to $0.00001676, adding more to bearish bias. To investors, this simply means Shiba Inu may not rally when Bitcoin rallies, but it may also not nosedive in case Bitcoin does.
While Shiba Inu continues to attract a stable investor base and maintain substantial trading volume, the token is creating a path in the crypto market different from the rest. Investors should be cautious, though, as independent movements of SHIB might mean increased volatility.
Shiba Inu Influence in the African Market
Africa is also home to one of the fastest rates of cryptocurrency adoption in the world, and Nigeria ranks among the countries with the highest levels of crypto ownership and volume globally. In Nigeria itself, where inflation has risen more than 20% over the past few months, the Shiba Inu represents an extremely affordable market to enter into, with fractional trading available to a wide base of newer investors.
With the current price at $0.00001845, SHIB offers investors the opportunity to purchase large volumes of tokens with a meager amount of capital. To young Africans looking to hedge against currency devaluation or trying to build their digital wealth, the potential upside in Shiba Inu independent of Bitcoin could be incredibly attractive. The 24-hour trading volume of $562.5 million underlines liquidity and interest in SHIB within the markets and no doubt will give African investors confidence in looking to enter a flexible market that is quite volatile.
This further cements the appeal of the Shiba Inu in Africa, where it is very accessible via platforms such as Binance, Luno, and Paxful. With increased mobile penetration, Africans are also accessing crypto markets via mobile-friendly apps that boast low-fee transactions in local currencies. Unlike Bitcoin, which is somewhat expensive to transact and very limited for micro-transactions, Shiba Inu is scalable and considerably cheaper to transact. Hence, it befits small-value remittances and day-to-day transactions. This might be driven by the growing SHIB ecosystem, including projects like Shibarium-a layer-2 blockchain solution—that may offer much more utility and DeFi opportunities attractive to African entrepreneurs and investors seeking to explore DeFi or blockchain solutions that will work at the local level.
Photo Credit: Times Tabloid