- Exchange data suggested that SHIB’s price might rise to $0.000026 in a few weeks.
- The low NVT ratio indicated that the token remained undervalued.
The number of Shiba Inu [SHIB] tokens on exchanges has been decreasing since the last days of March, AMBCrypto found.
Using Glassnode’s provided Exchange Balance total, we noticed that the metric was 146.67 trillion before April began.
However, press time data showed that the Exchange Balance was 140.66 trillion, meaning that about 6 trillion SHIB have left these platforms.
Calm is coming
Typically, these withdrawals were supposed to cushion the effect of selling pressure. However, that was not the situation. In the last 30 days, SHIB lost 25.34% of its value, but the decline was widespread in the market.
However, if the balance on exchange continues to drop, there is a high chance for Shiba Inu to recover.
While that might not happen in the next few days, traders might need to keep an eye on the broader market sentiment in May.
Source: Glassnode
Should the sentiment tilt bullish, then the price of SHIB might surpass $0.000026 for a start. When we examined the difference in exchange inflow and outflow, it gave a similar sign.
According to AMBCrypto’s analysis of Santiment, Shiba Inu’s exchange inflow was 200.27 million. This metric is the number of tokens sent into exchanges.
If it increases, it increases the chances of a price decline. If the exchange inflow drops, then the opposite happens.
The exchange outflow, at the opposite end, was 683.91 million. With the Shiba Inu inflow 3x less than the outflow, it is expected that SHIB might face less selling pressure in the days to come.
Source: Santiment
SHIB aims to hit $0.000040
Another metric AMBCrypto decided to examine was the NVT Ratio. NVT is an acronym for Network Value Transaction. This metric divides the market cap of a project by the on-chain volume transferred.
If the result of this division gives a high ratio, it means investors are paying a premium for a token. In this case, we can say that the price could be overvalued relative to the market condition.
On the other hand, a low NVT ratio signals undervaluation. At press time, Shiba Inu’s NVT Ratio was down to 107.72, indicating that the price might increase.
Sources: Glassnode
However, the metric can decrease from this point. If that is the case, SHIB’s projected rebound could be harder.
In February, when the NVT Ratio was 45.48, the price of the token climbed from $0.000010 and hit $0.000035 by the first week in March.
Read Shiba Inu’s [SHIB] Price Prediction 2024-2025
Taking the event into consideration, SHIB might try to replicate the performance. If validated, the price of the cryptocurrency might rally past $0.000040.
In the long-term, this potential rise could be better, as SHIB might aim to delete one zero again.
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