Shiba Inu captured attention in May 2021, rallying 1500% within days. The meme cryptocurrency subsequently rose to become one of the top gainers in the cryptocurrency market for 2021, rising millions of percent.
Market observers seem to be watching closely to see if history would be kind for Shiba Inu (SHIB) to repeat another impressive rally in May. At a present price of $0.0000212, Shiba Inu remains down 75.93% from its all-time highs of $0.00008845 reached in October 2021.
Despite the drop, SHIB has maintained its place in the top 20 cryptocurrencies by market capitalization for some time now amid increasing adoption.
According to a SHIB user, @ShibAlexander ‘’ Bullrun of May is behind the corner’’. Will history be kind to SHIB this May? The majority of cryptocurrencies suffered selling pressure in April alongside lead assets, Bitcoin and Ethereum.
Per Intotheblock data, Shiba Inu maintains a 63% 30-day correlation with bitcoin, thus bitcoin price may be another key item to watch from the historical perspective.
May has historically been a positive month for Bitcoin, recording gains in 8 out of 11 instances since 2011. Averagely, the price of BTC rose by nearly 20.70% in May. Generally, equities also perform well during the second quarter, which implies investors might begin to increase their exposure to speculative assets. This could provide an opportunity for buyers to enter the market after months of sideways trading.
While there seems to be much to expect in May, investors should note that historical returns may not be a guarantee of future returns. Technical signals, for example, hint at a period of market stabilization, albeit with limited upward potential. Traders of crypto derivatives have conflicting feelings about the market.
According to Santiment, Ethereum’s key stakeholders are showing some accumulation, adding 142,000 more ETH to their bags over the past 10 days. After a long dump going back to mid-December, the onchain analytics firm notes that this is the most sustained level of accumulation recorded in over four months.
Standard Chartered’s head of crypto research Geoffrey Kendrick forecasts $100,000 and $10,000 prices for Bitcoin and Ethereum respectively, implying a 150 percent and 250 percent increase in value. According to Kendrick, the price of ethereum might increase by more than tenfold to $35,000.
Explaining the reason behind this “the use cases in things like ethereum, for example, haven’t really even played out yet at all. So my backdrop is very, very positive.”Also, Kendrick believes that Ethereum will gain from its upcoming network upgrade dubbed “the merge”
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