Shiba Inu (SHIB), one of the major meme coins, has recently attracted the attention of its largest holders, “whales”. Key on-chain indicators have indicated buying opportunities, leading these large investors to accumulate more SHIB tokens.
However, profits may not be realized as quickly as expected. Market sentiment towards Shiba Inu remains bearish, suggesting that the coin could experience further declines.
Shiba Inu whales start to move
Since Sunday , the volume of large transactions on Shiba Inu has more than doubled . According to data from cryptocurrency on-chain data platform IntoTheBlock, large transactions exceeding $100,000 have surged 406% in the past three days.
The largest volume on Sunday was SHIB 395 billion. However, on Tuesday, it surged to SHIB 2.51 trillion. In dollar terms, it jumped from $5.31 million to $33.41 million, showing a significant increase in market activity.
Read more: How to buy a Shiba Inu and all the information you need
The reason for this surge in whale activity is simple. This group of investors is taking advantage of the undervalued state of the coin. Since the price of Shiba Inu peaked at $0.000016 on August 24 , its value has fallen by 19%.
This price drop indicates a negative Market Value to Realized Value (MVRV) ratio, suggesting SHIB may be undervalued, providing a buying opportunity for those looking to “buy the dip.”
SHIB’s current 30-day and 90-day MVRV ratios are -2.70 and -13.24 respectively, indicating that the current value is lower than the average price of all tokens in circulation. Historically, this is a buy signal, allowing investors to accumulate assets at a low price and sell them at a higher value.
SHIB Price Forecast: 36% Price Rise at Risk
However, these expected gains may be delayed as the bearish sentiment around Shiba Inu persists. For example, the Elder-Ray Index (ERI), which tracks the balance of buying and selling pressure, has remained negative since Monday, suggesting that sellers are in the lead and buying activity is weakening.
Additionally, the Directional Movement Index (DMI) also reflects a bearish trend. The negative direction indicator (red) is above the positive direction indicator (blue), highlighting that selling pressure is currently stronger than buying demand.
Read more: Shiba Inu (SHIB) Price Forecast 2024/2025/2030
If the buying pressure weakens further, SHIB’s value could continue to decline. The worst case scenario is that it will reach the low of $0.000010 recorded on August 5. This will be a setback for whales who are currently accumulating SHIB and hoping to increase its value by 36%.
Conversely, the scenario where SHIB price increases is simple. It only happens when demand increases and the price of Shiba Inu rises towards the resistance level of $0.000018 .
