Shiba Inu in a Period of Volatility
The Shiba Inu (SHIB) token is experiencing heightened volatility as its price retreats from recent highs. On-chain data reveals mixed signals, indicating short-term bearish sentiment alongside potential accumulation phases. Whales and retail investors are closely monitoring key technical levels that could signal the token's future price direction.
MVRV Ratio Shows Reduced Selling Pressure
What Does MVRV Indicate?
According to Santiment data, the 30-day market value to realized value (MVRV) ratio for SHIB has dropped to -19.43%. This negative value indicates that current holders are sitting on significant losses.
Historically, such low MVRV levels signal accumulation periods, as investors are less likely to sell at a loss. This trend reduces selling pressure and suggests that SHIB may be nearing a potential local bottom. If the MVRV ratio starts to recover, it could mark the beginning of an accumulation phase and lay the foundation for future price rebounds.
Whales Are Buying During the Decline
Interest from Large Investors
Data shows that large wallets, particularly those holding 10 to 100 billion SHIB, have seen increasing balances. These investors, known as whales, are actively accumulating tokens during the current price dip.
In contrast, smaller wallets holding 100 million to 1 billion SHIB have remained mostly stable, indicating minimal activity among retail investors. This divergence highlights the confidence of large holders in SHIB's long-term potential.
Shiba Inu Price Holds Key Support Levels
Current Market Status
The price of Shiba Inu is hovering around $0.00002149, which is below its 50-day moving average ($0.00002542) but above the 200-day moving average ($0.00001873). This positioning suggests a short-term bearish trend but a relatively stable long-term outlook.
Technical Indicators
RSI (Relative Strength Index) is at 36.02, close to oversold territory. This indicates that selling pressure may be nearing exhaustion, potentially attracting new buyers at these discounted levels.
Support: The price has found strong support at $0.00002000, aligned with the 200-day MA.
Resistance: Immediate resistance lies at $0.00002542. A breakout above this level could reignite bullish momentum.
Future Outlook for SHIB
Accumulation and Potential Growth
Technical analysis and on-chain data suggest that SHIB is in an accumulation phase. Reduced selling pressure and whale accumulation reflect confidence in the token's long-term potential.
If the price holds above the $0.00002000 support level, it could form a stable base for further growth. A breakout above $0.00002542 may signal the start of a recovery and preparation for the next phase of price gains.
What to Watch?
Whale Activity: Continued accumulation by large holders could strengthen market confidence.
Technical Levels: Maintaining key support and breaking resistance levels will be crucial for SHIB's next moves.
While the short-term outlook remains uncertain, current signals suggest that Shiba Inu is consolidating and preparing for its next price phase.
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