In recent weeks, Shiba Inu has taken the lead in the meme coin market, posting impressive gains and returns. Still, the sentiment appears to be turning, with SHIB’s price showing signs of a bearish downturn from its high. Even with the excitement around Shibarium, SHIB’s specialty blockchain, the token has failed to meet its immediate bullish goals. However, the bullish on-chain trends suggest that SHIB’s bearish phase could be temporary.
Shiba Inu volatility continues to increase
In the past three days, Shiba Inu went through a $3.5 million liquidation after failing to get interest rates around $0.00001. As a result, investors redeemed assets worth $2.8 million. At this point, solid resistance looms above the $0.00001 level, with few buyers to push the price higher.
Despite the choppy waters, Shiba Inu is showing promising on-chain indicators. While Bitcoin is showing low volatility, Shiba Inu volatility is on the rise. Data from IntoTheBlock shows that SHIB’s volatility has grown consistently over the past month, rising from 47.3% to 84.4%. This suggests that traders are effectively profiting from their entry and exit points. Increasing volatility for SHIB signals increased trade and interest, potentially leading to bullish price increases due to increased buying momentum.
In addition, the Shiba Inu’s MVRV ratio has been on an upward trend over the past week, from a previous low of 0.456 to 0.548. This indicates that SHIB’s market value exceeds its realized value, a positive indicator for the meme coin.
A rising MVRV ratio implies that SHIB traders are unloading their positions at higher prices. Since the MVRV ratio hovers around 0.5, it also indicates that the asset is undervalued, indicating a possible future price increase.
What’s next for the SHIB price?
Shiba Inu witnessed a strong rejection near $0.00001, suggesting buyers failed to defend selling dominance around this level. As a result, the price of SHIB quickly fell below 0.038 Fib channel to strengthen selling positions. At the time of writing, the price of SHIB is trading at $0.0000097, down more than 3% in the past 24 hours.
However, bulls successfully defended against a drop below the support line, with the price stabilizing at a low of $0.0000094. It seems that buyers came close to this dip and viewed it as a lucrative entry point in anticipation of Shibarium’s launch.
Currently, bulls are trying to regain their previous momentum with SHIB price targeting the EMA20 trendline. If the price recovers from support and crosses the $0.00001 mark, it would indicate continued bullish interest in these lower prices. This could send the price to initially aim for $0.000012 and possibly approach resistance at $0.000014.
Conversely, if the bulls cannot sustain buying demand, SHIB price may fall below the support line. A drop below USD 0.000009 would push the price towards a consolidation around USD 0.0000083 where it could stay for an extended period of time until Shibarium launches.