The popular cryptocurrency Shiba Inu (SHIB) has experienced a notable decline, trading at $0.00001325 after losing crucial support with a daily drop of 2.7%. Despite this setback, on-chain metrics suggest a potential market bottom, hinting at a possible price rebound in the near future.
Increased Social Media Activity
Data from Santiment reveals that Shiba Inu’s social dominance has peaked on a monthly scale, indicating heightened interest and discussions about the altcoin on social platforms. This surge in social activity is typically a precursor to significant price movements, reflecting the community’s engagement and sentiment. However, since August 24, the price has been on a downward trajectory, raising concerns about whether this increased social sentiment will translate into buying pressure.
Despite the decline, sentiment remains optimistic, with many community members expressing confidence in Shiba Inu’s long-term potential. If broader market conditions improve, this positive sentiment could drive a swift price recovery.
MVRV Ratio Insights
Shiba Inu’s 30-day market value to realized value (MVRV) ratio has hit its lowest point in 10 months, suggesting recent transactions have occurred at significantly lower prices compared to the previous year. This drop indicates waning investor confidence in the short term and hints at a possible market correction.
Furthermore, the 30-day and 365-day MVRV ratios have plummeted alongside the price, reflecting reduced profitability for average investors. Currently, only 30.71% of SHIB investors are in profit, highlighting that the asset’s profitability is at a critical support level. Additional price drops could exacerbate losses and push more investors into the red.
Key Takeaways for Investors
– Monitor social media trends as they can signal upcoming price movements.
– Consider the low MVRV ratio as a potential buying opportunity, indicating SHIB is undervalued.
– Watch for support levels around $0.00001260, which could precede a potential rise to $0.00001460.
Currently, SHIB’s price is consolidating between demand and supply zones. Market makers recently induced a sharp drop by targeting the highest liquidity levels. Analysts predict that SHIB could find support around $0.00001260 before potentially rising to the $0.00001460 threshold, indicating a possible 16% increase following a 3% decline.