According to U.Today, Shiba Inu (SHIB), a dog-themed cryptocurrency, may be poised for a price rebound, according to key on-chain data. On-chain analytics firm Santiment has identified Shiba Inu as one of the large-cap assets currently showing significant undervaluation. This assessment is based on the MVRV Z-Score, a metric used to determine overvalued and undervalued assets based on average trader returns.
The MVRV indicator compares the market value (MV) and the realized value (RV) of a crypto asset. A high MVRV Z-Score suggests that the market value is significantly higher than the realized value, indicating probable overvaluation. Conversely, a low MVRV Z-Score suggests undervaluation, implying that the crypto asset is trading at a discount below its inherent worth. Santiment's analysis indicates that Shiba Inu is currently underbought, with its MVRV Z-Score suggesting undervaluation. This means that, on average, traders who have bought SHIB are currently holding it at a loss.
Historically, periods of undervaluation have been followed by significant rallies as prices adjust to coincide with their true value. At the time of writing, SHIB has fallen 1.23% in the previous 24 hours to $0.000017, reflecting the market's overall lackluster price activity. The indication of undervaluation is a potentially bullish sign for Shiba Inu. If this turns out to be accurate, SHIB could be on the verge of a significant price rebound.
However, it's important to note that market sentiment plays a crucial role in the price movements of cryptocurrencies, and Shiba Inu is no exception. Positive news, developments within the Shiba Inu ecosystem, or broader market trends could act as catalysts for the anticipated price rebound. The coming weeks could prove pivotal for Shiba Inu, and all eyes will be on whether this indication translates into real market movement. As the crypto community awaits further developments, the question remains: will Shiba Inu's undervaluation trigger a massive market reversal? The answer remains yet unknown.