Shiba Inu (SHIB), one of the prominent cryptocurrencies in the meme coin space, is currently experiencing a period of strong volatility. The price movement of SHIB in the coming time will depend mainly on Bitcoin (BTC), the leading cryptocurrency, due to the high correlation between the two assets. When Bitcoin leads the market, Shiba Inu can take advantage of the bullish momentum or, conversely, face bearish pressure if BTC goes down.

MVRV and Profit-Taking Pressure

A notable factor for Shiba Inu is the long/short-term MVRV (Market Value to Realized Value) index - an index that measures the profits of investors. Currently, this index of SHIB is at a 6-month low, indicating that short-term investors are making significant profits.

However, this is a negative sign. As short-term profits increase, the likelihood of profit-taking and sell-offs also increases. Short-term investors tend to sell their holdings to lock in profits, putting downward pressure on SHIB.

At the same time, the lack of capital inflows from long-term investors – who tend to hold coins for a long time and provide sustainable support – further destabilizes Shiba Inu’s market dynamics.

Dependency on Bitcoin and Resilience

Currently, the correlation between Shiba Inu and Bitcoin remains strong, at 0.77. This means that SHIB tends to move in the same direction as Bitcoin. If BTC continues its upward trajectory and heads towards $90,000, SHIB is likely to recover as well.

Bitcoin breaking above the psychological $90,000 level would further bolster confidence in the cryptocurrency market, helping Shiba Inu exit its consolidation phase and potentially break above key resistance levels.

Price Outlook: SHIB Struggling to Hold Support

At the time of writing, Shiba Inu is trading around $0.00001296, just above the key support level of $0.00001275. SHIB is struggling to hold this level in order to find a bounce opportunity. However, the success of the recovery depends heavily on Bitcoin’s next move.

If Bitcoin continues its uptrend, SHIB could find further momentum to reach or surpass the resistance level of $0.00001462. Once this level is broken and turned into support, SHIB could open the door for a larger upside move towards higher levels, such as $0.00001676.

Conversely, if Bitcoin declines, Shiba Inu could continue to consolidate around $0.00001275 or even fall further towards the next support level of $0.00001141, depending on the level of selling pressure in the market.

Conclusion

Shiba Inu is currently in a delicate situation, depending on Bitcoin’s volatility. To exit the neutral or bearish outlook, SHIB needs a strong rally above the resistance level of $0.00001462. Only if this happens, the popular meme cryptocurrency could open a new potential growth phase, with higher targets waiting ahead.