- Exchange data suggested that SHIB’s price might rise to $0.000026 in a few weeks.
The low NVT ratio indicated that the token remained undervalued.
As an experienced analyst, I believe that the current data and trends suggest a promising outlook for Shiba Inu (SHIB) in the coming weeks. The decrease in SHIB tokens on exchanges, which has been accompanied by a low NVT ratio, are two key indicators of potential price growth.
According to AMBCrypto’s discovery, the quantity of SHIB tokens residing on cryptocurrency exchanges has been on a downward trend since late March.
Based on the data from Glassnode, we observed that the total exchange balance amounted to 146.67 trillion units prior to the beginning of April.
As a researcher analyzing exchange data, I discovered that the balance stood at approximately 140.66 trillion at the time of press, indicating a withdrawal of around 6 trillion SHIB from these trading platforms.
Calm is coming
Normally, these withdrawals were intended to mitigate the impact of selling activity. Yet, this wasn’t the case. Over the past month, SHIB experienced a significant loss of 25.34% in value, but this downward trend affected the market as a whole.
If the exchange balance for Shiba Inu keeps declining, it’s likely that the coin will bounce back strongly.
Traders should monitor the overall market mood in May, as significant developments may occur that could impact their trades, even if they don’t expect such events in the immediate future.
If the market sentiment turns positive (bullish), Shib’s price could potentially rise above $0.000026 as an initial step based on our analysis of the exchange flow data. The inflow and outflow trends showed a comparable indication.
Based on AMBCrypto’s interpretation of Santiment’s data, approximately 200.27 million Shiba Inu tokens were transferred to cryptocurrency exchanges. This figure signifies the volume of tokens moving into trading platforms for potential buying and selling activities.
As a crypto investor, when I see an increase in the number of coins or tokens being transferred onto an exchange, it often signals potential selling pressure and increases the likelihood of a price decrease. Conversely, if the exchange inflow decreases, this could mean fewer coins are being sold, potentially leading to price stability or even growth.
As a researcher studying the cryptocurrency market, I’ve found that the exchange outflow, which represents the amount of a specific cryptocurrency leaving exchanges, was 683.91 million units for the Shiba Inu token. On the other hand, the inflow of SHIB into exchanges, which signifies new tokens being deposited, was only about one-third of the outflow. Based on this information, it appears that there will be less selling pressure on Shiba Inu in the near future because fewer tokens are entering the market compared to those leaving it.
SHIB aims to hit $0.000040
AMBCrypto analyzed another quantitative indicator, referred to as the NVT Ratio. The abbreviation “NVT” stands for Network Value Transactions. This metric calculates the market capitalization of a project relative to the total value of transactions processed on its blockchain.
As a crypto investor, if the token’s price appears significantly higher when compared to its underlying fundamental value after performing the division, then it might be an indication of investors paying more than what the market conditions warrant. Consequently, the token could potentially be overvalued in this scenario.
In contrast, a NVT ratio below average suggests potential undervaluation for Shiba Inu. Currently, its NVT Ratio stands at 107.72, implying a possible price rise.
Sources: Glassnode
Should the metric continue to decline beyond this point, Shib’s anticipated recovery may prove more challenging.
As a researcher, I’ve noticed an intriguing pattern in the price behavior of the token. In February, when the NVT Ratio stood at 45.48, there was a significant price surge. The token’s value began at $0.000010 and rose to $0.000035 by the first week in March.
Read Shiba Inu’s [SHIB] Price Prediction 2024-2025
Considering the recent success of an event, Shibmaybe aim for a similar outcome, potentially pushing its price beyond $0.000040 if confirmed.
In the long-term, this potential rise could be better, as SHIB might aim to delete one zero again.
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2024-05-01 08:07