- SHIB has remained below its short-moving average.
- RSI is indicating pending seller exhaustion.
As a seasoned analyst with over two decades of experience observing cryptocurrency markets, I find myself intrigued by the current state of Shiba Inu [SHIB]. This token has been navigating a rollercoaster ride, much like my first Ferris wheel ride at Coney Island back in ’98!
As a researcher delving into the world of digital currencies, I’ve observed that Shiba Inu (SHIB) is currently experiencing increased market turbulence. The value has dipped after reaching its peak, indicating a reversal from recent gains. However, on-chain indicators present a blend of positive and negative signs.
Regardless of the temporary negative outlook, significant whale buying and potential indications of a turning point have taken center stage. As the token hovers around crucial resistance zones, investors are on high alert for any hints of a shift in trend direction.
MVRV Ratio signals reduced selling pressure
Based on a recent Santiment chart analysis, the 30-day Market Value to Realized Value Ratio (MVRV) for Shiba Inu has significantly dropped by approximately 19.43%.
At present, it appears that the majority of recent owners have been experiencing substantial losses. Typically, when the MVRV ratio is this deeply negative, it signals accumulation phases, as owners tend to be less inclined to sell at a loss, thereby decreasing overall selling pressure.
This pattern seems to indicate that Shiba Inu (SHIB) might be nearing a possible temporary low point. If the MVRV shows signs of recovery, it could imply a period of accumulation, which may pave the way for an upcoming price rise.
Whales dominate as large wallets accumulate
Examining the distribution graph of Shiba Inu coin holdings shows a consistent upward trend, noticeably in larger wallets that contain between 10 billion and 100 billion SHIB.
These specific investors, commonly known as “whales,” have been notably purchasing during the drop in SHIB’s price.
Contrarily, wallets containing between 100 million and 1 billion SHIB have shown a steady state, implying reduced transactions by individual investors. This disparity suggests the faith of major investors, as they seem to be strategically holding onto their tokens with an eye towards future profits.
Shiba Inu price holds critical support levels
According to AMBCrypto’s analysis, the price of Shiba Inu stands at approximately $0.00002149. This is lower than its 50-day moving average (MA), which is around $0.00002542, but it’s above its 200-day MA, currently set at $0.00001873.
Additionally, this alignment suggests a temporary downtrend in the near term, yet a more enduring uptrend over the long haul.
Right now, the Relative Strength Index (RSI) stands at 36.02, which means it’s approaching a region where the market is considered oversold. This suggests that the intense selling phase might be winding down, making it possible for bargain-hunters to step in and purchase assets at reduced prices.
SHIB’s price has found a robust base at approximately $0.00002000, which coincides with its 200-day moving average. The nearest barrier for growth is situated around $0.00002542. If SHIB manages to surpass this hurdle, it could rekindle the positive price trend.
Outlook for SHIB
Based on the alignment of technical indicators and blockchain data, it appears that Shiba Inu is entering a period of accumulation. The low selling pressure suggested by the MVRV ratio implies a reduced likelihood of significant downward movement, while increased whale buying suggests faith in SHIB’s future prospects.
At $0.00002000, there’s a solid base for continued growth, and surpassing $0.00002542 might indicate the commencement of an upward trend, potentially signaling a market recovery.
Despite some lingering unpredictability in the immediate future, these signs suggest that the token is gathering strength before moving onto its next pricing stage.
Keep a close eye on shifts in the behavior of large-scale players (whales) and key technical indicators, as this can help predict the potential movement of the Shiba Inu token.
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2024-12-23 06:15