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Meme Coin Chill: Shiba Inu (SHIB) Price Eyes Correction Amid Cooling Trend

2 mins
Updated by Ryan James
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In Brief

  • SHIB price soared by 8% on Thursday as PEPE FUD spreads.
  • Age Consumed has dropped significantly.
  • The MVRV ratio suggests room for more gains.
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After sliding 32% in May, Shiba Inu (SHIB) price gained 8% on Thursday. On-chain data suggests that SHIB could now be on the brink of a bullish reversal. Will the positive Shiba Inu price prediction of $0.00001500 be confirmed?

This week, Shiba Inu (SHIB) underlying on-chain data has flashed multiple green signals. This could attributed to the decline in the price of PEPE.

It appears that investors are seeking refuge in more established alternative assets as the hype cools off. And as one of the top 3 ranked meme coins globally, SHIB price has benefited from that upside.

SHIB Long-term Holders are Regaining Confidence

After a spate of massive sell-offs in the first week of May, long-term investors in the Shiba Inu network now appear to be regaining confidence.

Indicatively, SHIB Age Consumed has declined 65% from 160.55 trillion on May 8 to 55.91 trillion at the close of May 11. 

Age consumed measures the total number of days since each traded coin was last moved between addresses.

Shiba Inu (SHIB) Price Prediction Age Consumed - May 2023
Shiba Inu (SHIB) Price Prediction – Age Consumed – May 2023. Source: Santiment

As observed above, a decrease in the Age Consumed suggests that long-term investors are increasingly holding on to their tokens. If it continues to decline, it may lead to a significant drop in selling pressure and trigger further price gains. 

Despite Price Gains, Shiba Inu Holders May Not Sell 

Despite the 8% SHIB meme coin price gains, on-chain data shows that most Shiba Inu investors may be unwilling to sell due to the current levels of unrealized losses.

The Market Value to Realized Value (MVRV) ratio evaluates the financial position of the current holders of an asset. 

And, as things stand, most investors that bought SHIB within the past month will make 16% losses if they sell at the current price of $0.0000128.

Shiba Inu (SHIB) Price Prediction May 2023 - MVRV ratio.
Shiba Inu (SHIB) Price Prediction May 2023 – MVRV ratio. Source: Santiment

To reiterate, the MVRV ratio evaluates the financial position of current token holders to estimate the percentage of their unrealized losses or profits.

Based on the historical data above, investors last took such losses during the USDC-depeg panic sell-off in March.

Summarily, with the high level of unrealized losses, if the conviction among long-term investors grows, the SHIBA price could enter a prolonged bull rally. 

SHIB Price Prediction: Bulls Can Reclaim $0.000012

According to IntoTheBlock’s Exchange On-chain Market Depth, SHIB must rise 10% to cross $0.000010 before holders can be confident of the bullish Shiba Inu price prediction.  At that zone, bearish traders looking to sell 304 billion SHIB could slow the rally. 

But if the positive SHIB price prediction plays out, the price could rally as high as $0.000012. 

 Inu (SHIB) Price Prediction - May 2023. Exchange On-chain Market Depth.
Inu (SHIB) Price Prediction – May 2023. Exchange On-chain Market Depth. Source: IntoTheBlock

Still, the bearish trend could return if the SHIB price sinks 5% to lose the $0.0000085 support level. But the buy-wall of 276,000 SHIB, around 5% below the current market price, will likely prevent the drop. 

However, failure to hold that support line could invalidate the bullish SHIB price prediction and trigger a further 15% downswing toward $0.0000075.

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Ibrahim Ajibade
Ibrahim Ajibade Ademolawa is an experienced On-chain research analyst who began his career in Commercial Banking. He has worked with several Web3 startups and financial institutions —analyzing technical concepts and spectacular events that link the DeFi and TradFi worlds. He holds a Bachelors’ Degree in Economics and is currently pursuing an MSc. in Blockchain & Distributed Ledger Technologies.