As of the latest update, Shiba Inu [SHIB] was priced at $0.0000186, showing a marginal 0.9% increase in a 24-hour timeframe. Despite this uptick, the meme coin has witnessed a nearly 7% decline over the past week.
One possible reason influencing SHIB’s performance is the decrease in wallet profits, which has negatively impacted investor confidence.
Decline in Profitable Wallets Reaches a 3-Month Low
The number of profitable Shiba Inu wallets has fallen to 676,500 addresses, marking the lowest point in three months. Presently, only 47% of SHIB holders are making profits, while 49% are facing losses.
Historical data suggests that SHIB’s price surge typically aligns with an increase in the number of profitable wallets. Therefore, a scenario where more traders incur losses could potentially lead to further downward movements for SHIB.
Traders seeking to mitigate their losses might contribute to additional selling pressure on the meme coin, triggering a retreat.
How Does a Decreasing MVRV Impact Price?
The Market Value to Realized Value (MVRV) ratio for Shiba Inu has dropped to 0.907, hitting its lowest level since early November 2024. This decrease signifies that the average holder is earning less profit from their investments.
A low MVRV could result in reduced selling activity, as diminishing profits reduce the urge to sell. Yet, this decline might also lead to further drops if buyer demand remains subdued.
Price Assessment for SHIB
An analysis of Shiba Inu’s daily chart indicates that selling pressure has outweighed buying pressure, with the Relative Strength Index (RSI) plummeting to 36, signaling a bearish trend.
Currently, the RSI is showing an upward trend, suggesting an increase in buying momentum. A potential crossover above the signal line could strengthen buying impetus.
Simultaneously, the Average Directional Index (ADX) is on the rise, indicating the resilience of the downtrend. Traders should monitor the ADX line for any signs of a bullish reversal.
SHIB has encountered resistance at the 0.786 Fibonacci level ($0.0000189). If it manages to break this barrier and extend its gains, the next target for the meme coin stands at $0.0000212.
Resurgence in Open Interest
Data from Coinglass reveals a notable drop in Shiba Inu’s Open Interest (OI) to $351 million. As per the latest data, this figure has risen to $348 million following a modest 5% growth over 24 hours, indicating an increase in fresh positions being initiated by traders.
A sustained uptrend in OI would signify a growing speculative interest that could bolster an upward trajectory. The market appears to be tilted towards long positions, evident from the positive Funding Rates.