Despite its lackluster performance, the Shiba Inu attracts the attention of whales. The MVRV Ratio indicated that SHIB's price might experience a rise soon.
Due to its lackluster performance, the Shiba Inu (SHIB) cryptocurrency, one of the world's most renowned meme coins, was unable to bring any good news to its investors. The price of SHIB was only able to climb by more than 2% over the past week, which is not satisfactory compared to the price increases of other cryptocurrencies.
For example, Dogecoin (DOGE), the most valuable meme coin, measured in terms of market capitalization, recorded a price increase of more than 22 percent over the past week. When this article was written, SHIB had a market cap of more than $5 billion and was trading at $0.00000919.
Even though it was difficult for SHIB to go up the price ladder, whales nevertheless demonstrated significant interest in the token. SHIB became the first choice of the whales that the top 500 Ethereum whales have been holding, making it the clear winner in this competition. Surprisingly, taking a look at the measurements provided by SHIB can provide some insight into the whales' thought processes.
What's up next?
The chart that Santiment provided showed that despite the slow-moving price action, SHIB's MVRV Ratio was on a steady ascent. This bullish indicator indicates a possible northern breakout might occur in the near future.
Over the last week, Shiba Inu managed to garner a lot of support from crypto community members, as evidenced by the numerous increases in its social dominance. Furthermore, according to BSC Daily, a popular Twitter account that provides updates connected to the BNB ecosystem, SHIB was also on the list of crypto projects trending on CertiK. This information was gleaned from CertiK's tweets.
According to the data provided by CryptoQuant, SHIB's net deposits on exchanges were low compared to the average for the past seven days. This was another optimistic indication because it indicated less selling pressure. In addition, the number of active addresses and transactions was also increasing, which provided another cause for optimism for a potential price increase in the days ahead.
Some Unfavorable Aspects
Even though the metrics seemed to be in SHIB's favor, the market indicators told a very different picture, as several of them pointed to the prospect of a downward trend in the days that were to come.
The Bollinger Band indicated that the price of SHIB had entered a squeeze zone, which decreased the likelihood of a movement to the north in the short run.
Both the Relative Strength Index (RSI) and the Chaikin Money Flow (CMF) for Shiba Inu had shown very modest negative movements and were currently located below the neutral mark.
However, the Exponential Moving Average (EMA) Ribbon indicated that there was still a positive edge in the market because the 20-day EMA was still higher than the 55-day EMA. This gave some reason for optimism.