Shiba Inu (SHIB) has shown notable strength lately, with a gain of more than 16% in the last week of April. Despite a challenging year for meme coins, SHIB has demonstrated more resilience compared to popular peers such as BONK, PEPE, and DOGE.
Its considerable correlation of 0.82 with Bitcoin indicates the potential for further gains if Bitcoin's uptrend continues. If momentum builds up, SHIB could be set for a substantial rally, aiming to revisit price levels not seen since late 2021.
SHIB Stands Out Among Meme Coins Amid Market Turbulence
This year has been tough for meme coins in general, with most of the top 10 coins being in the red.
Shiba Inu's price has dropped by 33.11%, which, although significant, is still better than the major meme coins like BONK, PEPE, and DOGE, which have experienced more significant declines.
While SHIB has faced losses, its comparative resilience positions it favorably if sentiment in the sector shifts positively.
If the broader cryptocurrency market shows signs of recovery in the second quarter, SHIB could potentially benefit along with the meme coin sector as a whole. Meme coins are known for their exaggerated price movements, tending to experience larger gains during market rallies.
However, they are also prone to sharper declines when the market weakens. Should momentum pick up, SHIB could be one of the initial meme coins to respond strongly to renewed investor interest in riskier assets.
SHIB Could Ride the Wave of Bitcoin's Momentum with a Correlation of 0.82
Shiba Inu has a strong correlation of 0.82 with Bitcoin (BTC) at present.
With Bitcoin gaining momentum into the second quarter, this high correlation could position SHIB for a substantial upward movement.
Over the past week, BTC has seen a more than 10% increase, while SHIB has surged by over 16%. This suggests that SHIB is already showing a more pronounced reaction to Bitcoin's positive price trend.
With Bitcoin potentially on track to surpass the $100,000 mark - a level that many analysts foresee in Q2, this could trigger fresh all-time highs for the broader crypto market. In this situation, SHIB could be one of the most significant beneficiaries among major meme coins.
Revisiting 2021 Highs Requires a 182% Rally for Shiba Inu (SHIB)
During the previous major rally, Shiba Inu recorded remarkable gains, surging by 157% between September 18 and December 11, 2024.
This surge was driven by stronger Bitcoin performance, renewed interest in meme coins, and increased retail participation. SHIB's price history shows that once momentum picks up, its rallies can accelerate rapidly, often outpacing the general market.
If SHIB enters a new uptrend cycle, fueled by the growing interest in meme coins and Bitcoin's upward movement, it would need to climb approximately 182% to reach the $0.000040 level. This would mark the first time since December 2021 that SHIB attains that price level, highlighting its potential for rapid gains if market conditions remain bullish.