Shiba Inu News- SHIB Approaches Key Support; 10% Drop Could Be Imminent
Shiba Inu News– Shiba Inu (SHIB) holders have been holding onto hopes for a significant turnaround in the meme coin’s performance. However, recent data reveals that the token has dropped 19.33% in value over the past 30 days. Despite this setback, on-chain analysis suggests that a potential rebound might be just around the corner.
Shiba Inu Approaches Critical Support Level
The key on-chain metric driving this optimism is the Market Value to Realized Value (MVRV) Long/Short Difference. This metric essentially compares the gains of short-term holders with those of long-term holders. A positive MVRV Long/Short Difference indicates that long-term holders are seeing higher unrealized gains, while a negative reading suggests that short-term holders are benefiting more.
Currently, the MVRV Long/Short Difference stands at -14.44%. Historically, SHIB’s price has often reached its bottom when this metric hits -24.05%. For instance, in October 2023, the MVRV Long/Short Difference touched this level, and shortly after, SHIB’s price began to rise, peaking in March. If this historical pattern holds, the meme coin might be just 10% away from hitting its bottom and potentially starting a reversal.
Increasing Short-Term Holder Activity
Recent data from IntoTheBlock has highlighted a noteworthy increase in the number of short-term Shiba Inu (SHIB) holders. Over the past 30 days, blockchain analytics have recorded an 11% rise in the number of traders who have been actively accumulating SHIB. This surge in short-term holders is a significant development and indicates a growing level of confidence in the coin’s potential for a rebound.
The uptick in short-term holders is particularly intriguing because it reflects a shift in market sentiment. Short-term investors are often more sensitive to immediate market trends and fluctuations, and their increased activity can be a strong indicator of changing attitudes towards the coin. The fact that these investors are choosing to accumulate SHIB, despite its recent downturn, suggests they see potential for future gains and are positioning themselves to benefit from any forthcoming upward movement.
This growing number of short-term holders could be a positive signal for SHIB, potentially marking the beginning of a bullish phase. If the trend of increasing short-term holders continues, it might indicate a broader market shift towards a more optimistic outlook for SHIB. The accumulation by these traders could act as a catalyst for price stabilization and eventual growth, as increased demand from short-term investors can help drive up the coin’s value.
On the other hand, if the trend reverses and there is a decline in the number of short-term holders, it might suggest a waning confidence in SHIB’s recovery prospects. A decrease in short-term interest could be a sign that investors are losing faith in the token’s ability to rebound and might be preparing to exit their positions. This shift could lead to further downward pressure on the coin’s price, undermining any potential for a recovery.
SHIB Price Prediction: Potential for a Downturn Before Upswing
Analyzing SHIB’s daily chart reveals that the coin has been trapped in a descending channel since July 16. Known as a channel down pattern, this bearish chart formation is defined by two downward trendlines: the upper trendline representing resistance and the lower one indicating support. If SHIB’s price falls below the lower trendline, it could continue to decline. However, breaking above the upper trendline would signal a potential bullish reversal.
As of the latest data, SHIB remains below the upper trendline, indicating that a downtrend is still possible. If this trend persists, the price may fall to the $0.000012 support level. This potential decline represents roughly a 10% drop. Should SHIB reach $0.000012, there is a strong likelihood for the price to reverse and possibly target $0.000015. However, if selling pressure from holders increases or the price breaks below the lower trendline, the token could face further declines.
In summary, while Shiba Inu has faced significant losses recently, on-chain metrics and increased short-term holder activity provide a glimmer of hope for a potential turnaround. Traders and investors should closely monitor these indicators as well as SHIB’s price movements for signs of a reversal or further decline.
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