Shiba Inu (SHIB) holders have long hoped for a change in the meme coin’s fortunes. However, the token’s value has fallen by 19.33% over the past 30 days.
Despite these disappointing results, supply chain analysis suggests that relief may be on the horizon.
Shiba Inu finally approaches his lifeline
The key metric in the chain that determines this bias is the Long/Short Market Value Realized Value (MVRV) difference. Essentially, the Long/Short MVRV difference shows whether short-term holders are making more profit than their long-term counterparts.
A positive rating means that long-term holders have more unrealized profits, while a negative rating favors short-term holders. In addition, this indicator helps to identify market bottoms and tops.
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The current reading is -14.44%. Historically, the SHIB price tends to bottom when the Long/Short MVRV difference reaches -24.05%.
For example, in October 2023, the indicator reached this level. A few weeks later, the SHIB price began to rise until it reached its annual peak in March. If this pattern rhymes, then the meme coin is only 10% away from hitting the bottom and turning up.
Short-term holders appear to be preparing for a potential bullish reversal. According to IntoTheBlock, the number of holders who have accumulated SHIB over the past 30 days has increased significantly, with blockchain analytics showing an 11% increase in the number of traders over that period.
If this trend continues, it would indicate growing confidence in the short-term potential of Shiba Inu. However, a decline would indicate doubts about the bullish outlook of the token.
SHIB Price Forecast: First Down, Then Up
According to the daily chart, SHIB price has been stuck in a descending channel since July 16. A descending channel, also called a down channel, is a bearish chart pattern formed by two descending trend lines.
In this pattern, the upper trendline represents resistance, while the lower trendline represents support. If the price breaks the lower trendline, the value may continue to fall. However, a break above the upper trendline will confirm a bullish reversal.
At press time, SHIB remains below the upper trendline, suggesting a likely downtrend. If so, the token price could decline to support at $0.000012. As shown in the image below, this potential decline is approximately 10%.
Read more: Shiba Inu (SHIB) Price Forecast 2024/2025/2030
So, if SHIB reaches $0.000012, there is a high chance that the price will reverse and potentially reach $0.000015. However, the token price may go lower if token holders sell it or the price breaks the lower trend line of the descending channel.
