Shiba Inu [SHIB] has been experiencing a phase of increased volatility, with its value retracting from recent peaks and on-chain data showing conflicting signals.
Despite the prevailing short-term pessimism, the accumulation by large investors and the potential formation of a bottoming phase have emerged as significant trends. The digital asset is currently hovering around crucial support levels, attracting close attention from market participants for any indications of a turnaround.
Decrease in MVRV Ratio Indicates Eased Selling Pressure
Analyzing the Santiment chart suggests that the 30-day MVRV Ratio for Shiba Inu has dropped to -19.43%.
This current figure implies that most recent holders are facing considerable losses. Historically, such deeply negative MVRV Ratios have signaled accumulation phases as holders tend to refrain from selling at a loss, consequently reducing overall selling pressure.
This pattern hints that SHIB might be nearing a probable local bottom. A recovery in the MVRV Ratio could potentially indicate an accumulation stage, setting the stage for a future price bounceback.
Whales Lead as Big Wallets Stockpile
Examination of the holder distribution chart uncovers a steady rise in balances of large wallets, particularly those holding between 10 billion to 100 billion SHIB.
This group of investors, commonly referred to as whales, has been actively accumulating SHIB amid its price decline.
In contrast, smaller wallets with holdings ranging from 100 million to 1 billion SHIB have remained unchanged, signaling limited engagement from retail investors. This contrast underscores the confidence of major holders, who are positioning themselves for potential long-term profits.
Maintaining Crucial Price Support Levels for Shiba Inu
Analysis of the cryptocurrency’s price chart indicates Shiba Inu trading at $0.00002149. This value is lower than its 50-day moving average (MA) of $0.00002542 but higher than the 200-day MA of $0.00001873.
This position signifies short-term bearish momentum but a relatively stable longer-term trend.
The Relative Strength Index (RSI) is currently at 36.02, approaching oversold territory. This suggests that selling pressure may be nearing exhaustion, potentially enticing buyers at discounted rates.
SHIB has formed a robust support at $0.00002000, in line with its 200-day MA, while facing immediate resistance at $0.00002542. A breakthrough past the resistance level could reignite bullish momentum.
Future Prospects for SHIB
The convergence of technical and on-chain metrics indicates that Shiba Inu is in an accumulation phase. The reduced selling pressure highlighted by the MVRV Ratio implies limited downside risks, while the continued accumulation by whales demonstrates faith in SHIB’s long-term prospects.
A steadfast foundation at $0.00002000 and a potential breakout above $0.00002542 could signal the dawn of a recovery phase.
Although the immediate future remains uncertain, these indicators suggest that the token is consolidating and gearing up for its next price movement.
It is advisable for traders and investors to keenly observe changes in whale activity and technical levels to anticipate the trajectory of SHIB.