Despite the volatility and recent challenges that Shiba Inu (SHIB) has faced, the meme coin could be set to withstand potential setbacks. Likewise, SHIB holders, who have dealt with a long period of uncertainty, appear to be keeping hopes alive as the cryptocurrency flashes signs of stability.
Will these investors who have placed sizable bets on SHIB avoid major losses? This on-chain gives details about the possibility.
Shiba Inu Holders Are Buying the Dip
According to data from IntoTheBlock, Shiba Inu’s large holders’ netflow has increased by 265% in the last seven days. This metric gauges if investors are stacking a cryptocurrency in large volume or distributing it.
Assuming the large holders’ netflow dropped from last week’s figure, this would have implied a rise in distribution. Price-wise, this decline might have influenced a drop in the cryptocurrency’s value.
Since the netflow increased significantly, some of the top SHIB holders have purchased more tokens than they have sold. If sustained, this action could drive a price increase for the cryptocurrency.
Read more: 12 Best Shiba Inu (SHIB) Wallets in 2024
Currently, SHIB’s price is $0.000013, a 46.58% decrease within the last 90 days. However, according to the Sharpe ratio, cryptocurrency seems to have a chance of producing a better return.
In simple terms, the Sharpe ratio compares the potential return on an investment with its risk. The higher the ratio, the higher the chances of producing a good return. Conversely, when the ratio drops, it implies that the risk might not be worth the potential investment.
According to data from Messari, Shiba Inu’s Sharpe ratio, which was -4.52 on August 5, has since recovered and now stands at 0.58. This notable increase increase suggests that purchasing Shiba Inu (SHIB) at its current value could prove worthwhile, provided broader market conditions stabilize.
If the positive trend continues, investors who recently added the meme coin to their portfolios might benefit from a potential price surge.
SHIB Price Prediction: A Run to $0.000016 Is Viable
SHIB’s daily chart shows that the token has been in a six-month downtrend. But this ugly reality might soon end. While a quick uptrend might not occur within a short period, it seems unlikely that SHIB would tumble again as it did during the first week of August.
A solid support level at $0.000012 could reinforce this bias, potentially pushing the token toward an upward reversal. As illustrated in the chart below, SHIB’s price could surge to $0.000016 if backed by strong buying pressure.
Read more: 12 Best Altcoin Exchanges for Crypto Trading in September 2024
In a highly bullish market, Shiba Inu (SHIB) could rally toward $0.000020. However, this forecast may be invalidated if large holders cease their recent accumulation. In such a case, SHIB’s price could drop to $0.000010.
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Disclaimer
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