- Shiba Inu’s MVRV Z score indicated that it could be undervalued
Network growth for SHIB surged, implying heightened interest in the memecoin
As a researcher with experience in analyzing cryptocurrency markets, I find Shiba Inu’s recent price performance disappointing, but the data suggests that it might be undervalued based on its historical price movements. Santiment’s MVRV Z-Score indicates that SHIB is currently underbought, which could signal potential buying pressure if the price dips closer to the average acquisition price.
Despite a lackluster price performance last week for Shiba Inu (SHIB), the second-largest meme coin by market capitalization, available data hints at potential undervaluation.
Should you buy SHIB?
As an analyst, I’ve reviewed Santiment’s data, and based on the MVRV Z-Score, I can conclude that I’m seeing an underbought situation with Shiba Inu (SHIB). A negative MVRV Z-Score for this cryptocurrency implies that the current market price is notably lower than the average price at which investors have previously transacted.
Interpreting this data could imply that Shib’s current price may be lower than its historical worth, suggesting a possible undervaluation. Although it doesn’t ensure price increases in the future, it might hint at potential buying interest if the price falls near the typical purchase cost.
One advantage of SHIB is the notable increase in its network expansion, as shown by a substantial surge in the number of active wallets engaging with the token at present. Should this pattern persist, there’s a strong possibility that the altcoin’s value will rise in the future.
During this timeframe, the speed at which the token moved around it remained constant, indicating a consistent trading frequency for SHIB.
As an analyst, I’ve examined the indicators related to Shiba Inu and found them to be generally favorable. However, upon closer inspection of the social media landscape, certain issues emerged that warrant attention.
The proportion of negative comments about SHIB has grown substantially in recent days, outweighing the number of positive comments, suggesting a shift in public sentiment towards the cryptocurrency.
Burning up
One potential influencing factor for Shiba Inu could be the rate at which SHIB tokens are being destroyed each day and week through burning mechanisms.
Read Shiba Inu’s [SHIB] Price Prediction 2024-25
Over the past 24 hours, there has been a substantial increase in the number of Shiba Inu tokens being burned. An impressive total of 5,877,244 tokens were destroyed during this timeframe, marking a remarkable jump of 248.64% compared to the previous burn rate.
As a researcher studying the SHIB token, I’d like to point out an essential aspect of its economy: burning. Burning is the permanent removal of SHIB tokens from circulation. This process serves to decrease the overall supply of SHIB in existence. Consequently, the remaining tokens become relatively scarcer and potentially more valuable due to their reduced availability.
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2024-06-29 18:15