Exchange data shows that SHIB’s price could rise to $0.000026 in a few weeks. The low NVT ratio suggests that the coin is still undervalued.
AMBCrypto found that the number of Shiba Inu [SHIB] tokens on exchanges has been decreasing since the last few days of March.
Using the total exchange balances provided by Glassnode, we note that before the start of April, this indicator was 146.67 trillion.
However, data at press time showed that the foreign exchange balance was 140.66 trillion, which means that about 6 trillion SHIB has left these platforms.
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Calm is coming
Normally, these withdrawals are intended to cushion the impact of selling pressure. However, this is not the case. Over the past 30 days, SHIB has lost 25.34% of its value, but such declines are common in the market.
However, if the exchange balance continues to decline, there is a good chance that the Shiba Inu will recover.
While this may not happen in the next few days, traders may want to keep an eye on broader market sentiment in May.
If the market sentiment tilts towards the bullish side, then the price of SHIB may first surpass $0.000026. When we examine the divergence of exchange inflows and outflows, it gives similar signs.
According to AMBCrypto’s analysis of Santiment, Shiba Inu’s exchange inflow is 200.27 million. This metric is the number of tokens sent to exchanges.
If prices rise, it increases the chances of prices falling. If foreign exchange inflows fall, the opposite is true.
The foreign exchange outflow on the other end was 683.91 million. Since the inflow of Shiba Inu was 3 times less than the outflow, it is expected that SHIB may face less selling pressure in the next few days.
SHIB aims to reach $0.000040
Another metric AMBCrypto decided to check was the NVT ratio. NVT stands for Network Value Transaction. This metric divides the market capitalization of a project by the number of on-chain transfers.
If the result of this division gives a high ratio, it means that investors are paying a premium for the token. In this case, we can say that the price may be overvalued relative to the market conditions.
On the other hand, a low NVT ratio implies undervaluation. At press time, Shiba Inu’s NVT ratio dropped to 107.72, suggesting that the price could rise.
However, the measure may decrease from this point on. If so, the rebound that SHIB expects may be more difficult.
In February, the NVT ratio was 45.48 and the coin price climbed from $0.000010 to $0.000035 in the first week of March.
Read Shiba Inu’s [SHIB] Price Prediction 2024-2025
Considering the event, SHIB may attempt to replicate the performance. If verified, the price of the cryptocurrency could rise above $0.000040.
This potential growth could be better in the long run, as SHIB could remove another zero.
