Shiba Inu [SHIB] could rally 20%, but only on THIS condition

As a seasoned crypto investor with a keen interest in Shiba Inu [SHIB], I find Ali Martinez’s analysis intriguing and believe there might be some merit to his prediction. The descending channel on SHIB’s price chart, as highlighted by the analyst, suggests a potential 20% rally, which aligns with my own technical analysis.

Based on the analysis of cryptocurrency expert Ali Martinez, there is a potential for Shiba Inu (SHIB) to experience a significant surge of approximately 20%. He expressed this viewpoint in a post on X, where he outlined the reasoning behind his thesis.

As a crypto investor, I’d like to share with you an insight from an analyst’s recent post. He presented a 4-hour Shiba Inu (SHIB) to US Dollar (USD) chart that depicted the token moving within a descending channel.

For the unfamiliar, a descending channel forms when two declining trendlines are drawn – one above and one below – a price movement on a chart.

Here, the upper line functions as a barrier of resistance, while the lower line signifies a level of support.

Based on its analysis, AMBCrypto noted that the Shiba Inu token’s native coin had been creating successively lower peaks and troughs along five different trendlines, implying that a potential breakout was imminent.

Shiba Inu [SHIB] could rally 20%, but only on THIS condition

SHIB is undervalued

From my perspective as a researcher, at the present moment, the memecoin is being traded at a price of $0.0000236— marking a 7.42% upward shift over the past 24 hours. This noteworthy rise implies that SHIB could potentially be embarking on its breakout phase.

Should this continue, then SHIB might hit $0.00002954 within a few days.

Additionally, the on-chain assessment by AMBCrypto using the Market Value to Realized Value (MVRV) ratio lends credence to this perspective.

The MVRV ratio metric measures profitability and tells if a cryptocurrency is undervalued or not.

As a financial analyst, I’d interpret that at the present moment, the Shiba Inu token’s 30-day MVRV ratio stands at -1.239%. This figure signifies that investors who bought the coin over the past month would incur an average loss if they chose to sell now.

As a crypto investor, I’ve observed that most participants in the market don’t typically behave in this way. Therefore, Shiba Inu (SHIB) could be considered an undervalued asset based on my analysis. With the ratio approaching positive territory, there is potential for the price to rise and validate the bullish perspective.

Shiba Inu [SHIB] could rally 20%, but only on THIS condition

HODL is the mantra

As a researcher examining the token market at AMBCrypto, I shifted my focus to explore the distribution of the token’s supply between exchanges and off-exchange holders.

As an analyst, I would interpret an uptick in Shiba Inu exchange supply as a sign that some traders are currently looking to capitalize on short-term price movements and may be planning to sell their holdings. This could potentially lead to a sudden decrease in the asset’s value if a large number of these traders decide to exit their positions at once. Conversely, a decline in exchange supply suggests that more traders are choosing to hold onto their Shiba Inu for the long term, reducing the amount available for trading and potentially stabilizing or even increasing the asset’s value.

The situation is reversed when it comes to SHIB‘s supply off the exchanges. At the current moment, approximately 74.7 trillion SHIB coins were held on exchanges. In contrast, the amount of SHIB tokens outside of exchanges had grown to around 927.17 trillion.

Many believers in the memecoin hold firmly to its long-term value based on the noticeable variation in performance metrics. Consequently, it’s plausible that there won’t be significant selling activity in the near future.

Read Shiba Inu’s [SHIB] Price Prediction 2024-2025

As a crypto investor, I can say that if the current market sentiment remains unchanged, there’s a possibility that the price may reach $0.00002954. However, it’s important to keep in mind that market conditions can shift unexpectedly and significantly impact asset prices. Therefore, staying informed and adaptable is crucial for successful investing.

If we look at a longer timeline, Shiba Inu’s price could potentially soar beyond this current target. But for that to happen, the exchange supply must not exceed hundreds of trillions.

2024-05-14 19:04

SHIB is undervalued

HODL is the mantra

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