The Shiba Inu's Rally Runs Into Trouble - Are We About to See Additional Corrections?
In the last 24 hours, the cryptocurrency market has lost 4% of its value, while the price of Shiba Inu has fallen 10% to $0.00002683.
Although the meme token has risen 19% in the last month and 160% in the past year, SHIB has fallen 8.5% in the last week as well.
The seven-day market value to realized value (MVRV) ratio dropped to -9% today as more SHIB holdings entered the red, and its decline today puts it in an oversold position.
Despite this, experts are predicting a swift recovery for the SHIB price, suggesting that the currency is about to make a comeback.
Problems Arise in Shiba Inu's Rally; Are Additional Fixes on the Horizon?
Following an overnight decline, SHIB has reached a bottom, and its signs point to a possible comeback in the near future.
After plunging below 30 a few hours ago, its relative strength index (purple) has started ascending again, and SHIB's price has risen by 2% in the last hour.
At the same time, the orange 30-period average of the coin has fallen below the blue 200-period average, which suggests a selloff in the near future.
However, the selloff has now occurred, putting SHIB in a position where it may make a robust recovery.
This is further backed up by the MVRV ratio, which has dropped below -9% in the last day.
This supports the idea that SHIB is now cheap and shows that, on average, SHIB holders have seen a 9% loss in the last week.
That is to say, it is expected to make a robust recovery in the near future, with comparable drops in the MVRV ratio resulting in their respective recoveries.
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