Following a recent dip to its lowest point in six months, Shiba Inu [SHIB] has experienced a robust recovery. Currently, SHIB is being traded at $0.0000163, reflecting an 8% increase in a 24-hour period.
The surge in SHIB’s value can be attributed to traders who took advantage of the price drop, although trading volumes have decreased by 32%, as per CoinMarketCap, indicating a relatively low demand.
Nevertheless, indicators based on blockchain transactions suggest a potential increase in buying pressure.
MVRV Ratio Indicates a Buying Opportunity
Shiba Inu’s Market Value to Realized Value (MVRV) ratio recently hit a low point of 0.78, marking a multi-month low. Despite recovering to 0.84, the ratio still points towards a favorable buying scenario.
A ratio below 1 implies that most SHIB holders are facing losses, which historically has signaled a phase of accumulation. Typically, a rise in the MVRV ratio precedes a surge in price, potentially leading to substantial gains for the token. Notably, significant addresses are actively acquiring and stockpiling SHIB.
The net inflows of large holders improved from -3.29 billion to 1.04 trillion, with whales adding over 1 trillion SHIB tokens within one day. This surge represents the most substantial single-day accumulation by whales in nearly a month, showcasing their active participation in buying the recent dip.
SHIB Price Evaluation
An examination of Shiba Inu’s daily chart reveals a strengthening bullish trend. The MACD line has consistently remained above the signal line, while the positive histogram bars indicate a notable buying momentum.
The Relative Strength Index (RSI) further supports this bullish sentiment, standing at 56, signaling dominance by buyers. However, the weak buying pressure has hindered attempts to surpass the resistance level at $0.0000169.
A breakdown at this resistance juncture could lead to a retracement towards the support level around $0.0000149. Conversely, an uptick in buying interest could propel the altcoin towards the 1.618 Fibonacci level ($0.0000202).
Is Sustaining the Upward Trend Possible for SHIB?
To sustain the current uptrend, SHIB bulls require a robust demand from buyers. Additionally, increased activity from whales, as evidenced by the significant token acquisition, hints at a potential phase of accumulation for the meme token.
However, if traders who entered the market during the dip opt to sell in a bid to minimize their losses, it could trigger a bearish reversal.