Shiba Inu (SHIB) is at a critical juncture within a symmetrical triangle formation, which is causing traders to worry about the price action.
Recent analysis reveals a slight decline in the MVRV ratio, suggesting that market sentiment is shifting towards profit taking.
According to the COINOTAG report, “The 2.3% decrease in the NVT ratio indicates that the transaction volume on the network is increasing and there is more activity on the network.”
Shiba Inu is going through a critical phase in a symmetrical triangle formation, which hints at potential price action along with changes in network activity and market sentiment.
The symmetrical triangle pattern seen on the Shiba Inu charts reflects market congestion and usually results in large price movements. The price is currently trading at around $0.00002478 and is showing a clear consolidation period.
Analysts predict that a possible price breakout could reach $0.00003255, which would represent an increase of around 32%. The symmetrical triangle formation is formed by a combination of resistance and support lines, and it suggests that traders should watch carefully for a significant breakout from this formation. If SHIB manages to break out of the resistance level, it could initiate a significant bullish trend in prices.
On the other hand, if the support levels are broken, it could be a sign of a bearish reversal and prices could head lower, leading to a decline.
The dynamics of the movement are meticulously analyzed with tools such as the Alligator indicator and the True Strength Index, and it appears that sellers are currently more dominant in the market.
The MVRV ratio, which has recently fallen by 4.02%, provides an important perspective on the past performance of prices. This ratio remains below the previous level of 2.02 and indicates that the market may be more cautious compared to previous speculative periods.
The market peaked and then experienced major corrections when the MVRV ratio rose to 5.15 levels in October 2021. Currently, the ratio is trading just above neutral levels, indicating that overvaluation is being avoided.
Shiba Inu’s NVT ratio is an indicator that measures the ratio of trading volume to market value and is showing a decrease of 2.30%. This indicates that the market is entering a period of calm with increasing activity on the network. Since the NVT ratio evaluates market valuation by comparing it to trading volume, this decrease provides important information about Shiba Inu’s real-world usage. According to historical data, high NVT ratios indicate overvaluation, while low ratios indicate undervalued opportunities. Current ratios indicate that a balance has been achieved in trading volume and the market environment has stabilized.
You can use tools like the SHIB Profit Calculator to assess whether your portfolio is suitable for potential growth.