- Shiba Inu’s price dropped by more than 7% last week.
- Metrics hinted at a trend reversal, but indicators suggested otherwise.
Shiba Inu [SHIB] investors had a rough week as the memecoin’s price dropped drastically. While that happened, an investor with a good track record once again showed confidence in SHIB by buying more tokens.
Does this mean that SHIB is getting ready for a pump?
Investors show confidence in Shiba Inu
CoinMarketCap’s data revealed that SHIB bears dominated the last week as the memecoin’s price dropped by more than 7%.
At the time of writing, SHIB was trading at $0.0000257 with a market capitalization of over $15.14 billion, making it the 11th largest crypto.
Lookonchain’s data revealed that an investor who has earlier earned profits with SHIB has accumulated 715.9 billion, worth over $18 million in the recent past.
The investor had earlier spent only $400K to buy 5.5 trillion SHIB in the early stages and sold for $121 million at two peaks. This suggested that the investor was expecting SHIB’s price to increase soon.
AMBCrypto’s analysis of Santiment’s data revealed that buying sentiment was overall dominant in the market. This seemed to be the case as SHIB’s exchange outflow spiked last week.
Additionally, its supply on exchanges dropped, while its supply outside of exchanges increased. This indicated a rise in buying pressure.
Whales were also buying SHIB, which was evident from the slight rise in its supply held by top addresses.
Source: Santiment
A bull rally for SHIB?
AMBCrypto then analyzed other metrics to find whether the rise in buying pressure would result in a price increase.
We found that SHIB’s MVRV ratio improved slightly, which can be inferred as a bullish signal.
Moreover, SHIB’s NVT ratio dropped sharply. This meant that the memecoin was undervalued, hinting at a bull rally in the coming days.
For starters, the NVT ratio is computed by dividing the market cap by the transferred on-chain volume measured in USD.
Source: Glassnode
We then analyzed the memecoin’s daily chart to see whether indicators also hint at a bull rally. Unlike the NVT ratio, market indicators continued to remain bearish.
The MACD displayed that the bulls and the bears were in a battle to gain an advantage over each other.
Read Shiba Inu’s [SHIB] Price Prediction 2024-25
Both its Relative Strength Index (RSI) and Chaikin Money Flow (CMF) registered downticks, suggesting a continued price decline.
If that happens, then Shiba Inu’s price might plummet to its support level of $0.0000207. However, if SHIB actually turns bullish, then it might once again touch $0.0000294.
Source: TradingView
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