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Shiba Inu eyes reversal as whales accumulate amid downturn – What now?
The recent price downturn of Shiba Inu (SHIB) has led to speculation about the token’s future trajectory. However, a closer examination of technical and on-chain metrics reveals intriguing signals that could hint at a potential reversal.
Firstly, the MVRV Ratio, which tracks market value against realized value, has plummeted to -19.43%. This unusual alignment suggests that recent holders are now operating at a significant loss, thereby reducing the overall sell pressure in the market. Historically, this sort of deeply negative ratio is often seen as an indicator of accumulation, preceding a potential price rebound.
Meanwhile, on-chain data reveals a striking trend among large wallets, with a considerable increase in their balance. This surge in accumulation by these ‘whales’ – institutional and sophisticated investors who typically hold significant amounts of cryptocurrency – suggests that they may be taking advantage of the downturn to load up on discounted SHIB.
The price chart analysis also corroborates this notion, as it shows that SHIB is trading at a critical support level of $0.00002149. This positioning highlights short-term bearish momentum but, more importantly, indicates a relatively stable longer-term trend. The RSI has plummeted to 36.02, hinting at exhaustion in selling pressure and potentially paving the way for fresh buying interest.
Furthermore, SHIB’s price action is closely tied to its respective short- and long-term moving averages (MA). A breakout above the immediate resistance at $0.00002542 could reignite bullish momentum and propel SHIB higher, while a breakdown below the support levels of $0.00002000 could signal further selling pressure.
In conclusion, these technical and on-chain signals suggest that Shiba Inu may be on the cusp of reversing its recent downturn. The alignment of MVRV Ratio with accumulation by whales, supported by the price chart analysis, paints a picture of consolidation before the next leg up. As such, traders and investors should closely monitor whale activity, technical levels, and market sentiment to anticipate the direction SHIB will take.
Source: ambcrypto.com
