As BTC continues to trade below $20,000, altcoin prices are also adapting. Meanwhile, 2 crypto analysts came up with their predictions for the future of SHIB and MATIC prices. Accordingly, negative scenarios seem to predominate in the 2 leading altcoins.
“Continuation of SHIB price recovery depends on it”
According to the latest price data, there is a barrier to the SHIB price recovery. This is its historical correlation with the leading cryptocurrency Bitcoin. Both assets are following broader market cues. Also, sentiment after the August drop is broadly still quite negative. Investors are in a state of “extreme fear” after two weeks, making recovery difficult. The Shiba Inu’s bearish move that ended a few days ago was actually fake. Because the meme coin has returned to its previous bearish state at the time of writing.
Black dots have started to reappear above the candlesticks in the last 42 hours. Data from the Parabolic SAR also supports this. The best support SHIB price has at the moment is the 50-Day Simple Moving Average, which is up 40%, which will support the market’s recovery to the top. However, this support is very likely to be lost if SHIB continues to decline. In addition, BTC also stands out as a negative factor for the price.
“Bitcoin SHIB correlation negatively affects price”
cryptocoin.com As we reported, Bitcoin is still in the critical zone below the 23.6% Fibonacci level. The price is not observing any different momentum as it is stuck in this zone. Trading at $19,200, BTC is in the danger zone as it is very close to the market floor. Bitcoin’s move continues to affect SHIB. SHIB shares a 0.61 correlation with BTC. So as long as Bitcoin continues to yield, so will SHIB. Additionally, the only good sign for the meme coin remains the growing demand.
“MATIC at a crossroads”
Polygon’s MATIC price has been one of the best performing altcoin assets this summer. Since June 18, Polygon has rallied an impressive 195%. MATIC price shows the underlying bullish techniques. But on-chain analytics gives a different scenario of what might lie for the future MATIC price. The altcoin is currently auctioning at $0.80. The Layer-2 token is down 20% since its summer high of $1.04.
Meanwhile, the Volume Profile indicator shows that traders are still holding their positions in anticipation of further profits in the future. Santiment’s Active Wallet Addresses Indicator reveals that active wallets are also disappearing amid the downtrend. That is, it supports the prediction that investors are HODLing. Despite the optimistic techniques, there are also some metrics below the price that worry investors.
“9 billion tokens moved”
In the last week of August, Santiment’s Token Circulation indicators revealed 9 billion MATICs moved. The increase in movement is significant. Because altcoins tend to experience sharp liquidations when whales start moving dormant tokens. The move of 9 billion MATIC has increased the 2-year circulating supply to an all-time high of 1.85 billion coins.
Theoretically, 9 billion tokens were dormant. In other words, it was in the hands of a high-capital investor. It is now possible for owners to prepare to sell the digital asset. If the trend is in favor of the on-chain metric narrative, an additional drop to $0.64 will occur. Such a move would result in a 20% drop in Polygon’s current market value. Its override level is located at $1.04, the summer high.
