Shiba Inu Flashes Extreme Bearish Signals Despite Shibarium Hype! Can On-chain Momentum Save SHIB Price?
In recent weeks, Shiba Inu has taken the lead in the meme coin market, registering impressive gains and returns. Yet, the sentiment appears to be turning, with SHIB’s price showing signs of a bearish downturn from its peak. Even with the excitement around Shibarium, SHIB’s dedicated blockchain, the token hasn’t met its immediate bullish goals. However, the bullish on-chain trends suggest that SHIB’s bearish phase could be temporary.
Shiba Inu’s Volatility Continues To Increase
In the past three days, Shiba Inu experienced a $3.5 million liquidation following its inability to gain buying interest around the $0.00001 mark. As a result, investors offloaded assets valued at $2.8 million. At present, a solid resistance looms over the $0.00001 level, with few buyers to drive the price upward.
Despite the choppy water, Shiba Inu showcases promising on-chain indicators. While Bitcoin displays low volatility, Shiba Inu’s volatility has been on the rise. Data from IntoTheBlock reveals that SHIB’s volatility has consistently grown over the past month, jumping from 47.3% to 84.4%. This suggests that traders are capitalizing effectively on their entry and exit points. Rising volatility for SHIB signals more trading and interest, potentially driving bullish price surges due to increased buying momentum.
Additionally, Shiba Inu’s MVRV ratio has seen an uptrend over the past week, climbing to 0.548 from a previous low of 0.456. This indicates that SHIB’s market value is surpassing its realized value, a positive indicator for the meme coin.
A rising MVRV ratio implies SHIB traders are offloading their holdings at higher prices. Given the MVRV ratio hovers around the 0.5 mark, it also points to the asset being undervalued, hinting at a potential future price surge.
What’s Next For SHIB Price?
Shiba Inu witnessed a strong rejection near $0.00001, suggesting that buyers failed to defend selling domination near this level. As a result, SHIB’s price declined below 0.038 Fib channel quickly to strengthen selling positions. As of writing, SHIB’s price is trading at $0.0000097, declining over 3% in the last 24 hours.
However, bulls successfully defended against a decline below the support line, with the price stabilizing at a low of $0.0000094. It appears that buyers entered near this dip, viewing it as a lucrative entry point in anticipation of the Shibarium launch.
Currently, bulls are trying to regain their previous momentum, with the SHIB price targeting the EMA20 trend line. If the price rebounds from support and surpasses the $0.00001 mark, it would suggest continued bullish interest at these lower prices. This could send the price to initially aim for $0.000012 and potentially approach the resistance at $0.000014.
Conversely, if the bulls cannot maintain buying demand, the SHIB price might experience a decline below the support line. A drop below $0.000009 would push the price towards a consolidation around $0.0000083, where it might remain for an extended period until Shibarium is launched.
