Shiba Inu [SHIB] is currently experiencing a period of increased volatility, with its price retracing from recent peaks and on-chain data showing conflicting signals.
Although there is a temporary bearish sentiment, the accumulation of large investors and a potential stabilization phase have become key focal points. As the token hovers near crucial support levels, market participants are eagerly awaiting signs of a turnaround.
Decrease in MVRV Ratio Indicates Lower Selling Pressure
Based on Santiment’s analysis, the 30-day Market Value to Realized Value Ratio (MVRV) for Shiba Inu has dropped to -19.43%.
This current figure implies that recent investors are facing substantial losses. Historically, such deeply negative MVRV ratios have signified periods of accumulation, as investors are less inclined to sell at a loss, leading to a decrease in overall selling pressure.
This trend suggests that SHIB might be approaching a possible local low. If the MVRV begins to rise again, it could indicate an accumulation phase, setting the stage for a future price recovery.
Strong Presence of Whales as Significant Wallets Accumulate
An examination of the holder distribution chart shows a consistent rise in the balances of large wallets, particularly those holding between 10 billion to 100 billion SHIB.
These large investors, often referred to as whales, have been actively amassing SHIB during its price decline.
In contrast, smaller wallets holding 100 million to 1 billion SHIB have demonstrated stability, suggesting minimal activity from retail investors. This difference emphasizes the confidence of major holders positioning themselves for long-term profits.
Shiba Inu Maintains Key Support Levels
Analysis of CryptoCrypto’s price chart indicates Shiba Inu is currently 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.
While this positioning indicates short-term bearish momentum, it also suggests a relatively steady longer-term trend.
The Relative Strength Index (RSI) is at 36.02, approaching oversold territory. This suggests that selling pressure could be nearing exhaustion, potentially attracting buyers at discounted levels.
SHIB has established solid support at $0.00002000, in line with its 200-day MA, with immediate resistance at $0.00002542. A break above this resistance level could rekindle bullish momentum.
Forecast for SHIB
The convergence of technical and on-chain metrics indicates that Shiba Inu is in an accumulation phase. The decreased selling pressure highlighted by the MVRV ratio suggests limited downward risk, while whale accumulation reflects confidence in SHIB’s long-term prospects.
The $0.00002000 support level provides a sturdy base, and a breach above $0.00002542 could signify the beginning of a recovery.
Although the short-term outlook remains uncertain, these indicators point towards the token consolidating and gearing up for its next price move.
Traders and investors should keep a close eye on changes in whale behavior and technical levels to gauge the direction of SHIB.