- Shiba Inu’s MVRV ratio has dropped significantly, signaling reduced selling pressure and a potential accumulation phase.
- Whale activity shows large investors accumulating SHIB while smaller wallets remain stable.
Shiba Inu (SHIB) has been experiencing volatility, with its price retreating from recent highs. Although there are bearish signals, market indicators show a possibility of a bull market following whale accumulation and technical patterns.
According to Santiment data, the 30-day MVRV for Shiba Inu has reached -19.43%, which is now undervalued. This means that most of the holders are running at a loss. In the past, such low MVRV values have been associated with low sell pressure, as people are less willing to sell at losses.
Analysts believe that SHIB may have reached its local bottom. An increase in the MVRV ratio could indicate accumulation, which may result in a short-term price increase.
Whale Activity Highlights Long-Term Confidence
Shiba Inu holder distribution also indicates that large wallets with holdings ranging from 10 billion to 100 billion SHIB are active. These investors, referred to as whales, have been buying SHIB during its price drop, which shows their long-term belief in the token.
However, retail investors have been less active as wallets holding 100 million to 1 billion SHIB have been less volatile. This divergence supports the role of whales in driving the development of SHIBs market trends.
Furthermore, IntoTheBlock analysis shows that transactions occur at different price levels. At the current price, 270 addresses bought more than 362 billion SHIB tokens. At press time, addresses holding SHIB worth $1.97 billion at $0.000026 were in the red. This is an indication of a “sell wall,” which may affect the price of SHIB in the market.
Price Projections Highlight Bullish Potential
According to market analysts, SHIB may experience an upward trend based on technical analysis. Analyst “Dollars Maker” predicts a 235% increase, and the token can climb up to $0.00005816. The first targets are $0.00003339 and $0.00004566, meaning quite a jump from current levels.
Additionally, Klejdi Cuni, a market analyst, noted a bullish pattern on SHIB’s daily chart. He highlighted that the current strong $0.00002424 support level has been held for over a month as a sign of increasing investor confidence. As Cuni stated, a move above this level might turn SHIB towards $0.00003232, which is a rise of 25.6%. Also, if Bitcoin price touches $0.00004167, which is a resistance level not seen for the past 10 months, there would be a 61.6% rise.
Pouyan TradeFX, another popular analyst, pointed to a multi-year trendline as a key reason for SHIB’s price to be capped. If the price breaks out to the upside above this trendline, it could rally past the 100% mark to create a new high of $0.000074.
Such a development will continue to support SHIB as one of the best-performing meme coins in the market. Further analysis supports this optimism. According to Analyst Sherif, SHIB will outperform its previous ATH of $0.00008654 before this market cycle ends.
As of this writing, SHIB is trading at $0.00002157, a decline of 0.53% within the last 24 hours. Shib’s market capitalization is $12.7 billion, and its trading volume within a single day is $671.91 million.
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