The price of Shiba Inu (SHIB), a leading meme coin, has fallen 19% in the last month. This drop has created a buying opportunity for those looking to trade against the market.
As a result, SHIB whales increased their aggregations and took advantage of the decline.
Shiba Inu Falling prices invite whales
An analysis of SHIB’s on-chain market value to realized value (MVRV) ratio shows that the meme coin currently offers a buying opportunity. At press time, the metric is showing negative values across various moving averages.
According to Santiment, SHIB’s 30-day and 90-day MVRV ratios are -1.7 and -24.07, respectively.
When an asset’s MVRV falls below zero, it indicates that the asset is undervalued, meaning its current price is lower than the average price of all its tokens in circulation. This creates an opportunity for investors looking to “buy the dip.”
SHIB whales have noticed this undervaluation and have increased their trading activity. This is evident in the recent surge in large transactions involving the altcoin. According to IntoTheBlock, the number of SHIB transactions worth between $100,000 and $1,000,000 has increased by 128% in the last month.
Read More: 6 Best Platforms to Buy a Shiba Inu (SHIB) in 2024
A surge in large transactions in an asset often signals a bullish trend. This is because retail traders typically view increased whale trading activity as a positive sign that boosts their confidence. As a result, they are more likely to buy, which can lead to a sustained rise in prices.
SHIB Price Prediction: Think Before You Jump
SHIB technical analysis shows that despite increased interest from whales, the meme coin remains vulnerable to further declines.
Chaikin Money Flow (CMF), which tracks the inflow and outflow of money, is hovering around its centerline and is likely to fall below it. A CMF reading below zero usually indicates market weakness, as it reflects an increase in liquidity leaving the asset, which is often seen as a precursor to a price decline.
In addition, the SHIB Relative Strength Index (RSI) is 43.7, below the neutral line, highlighting that selling pressure is currently stronger than buying activity.
Read more: Shiba Inu (SHIB) Price Forecast 2024/2025/2030
If this trend continues, the price of SHIB could potentially fall to $0.000010. However, if the bulls regain control of the market and the demand for SHIB increases sharply, this could push its price to $0.000018.
