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Shiba Inu (SHIB) Sees Surge in Whale Activity as Coin Flashes Buy Signal

2 mins
Updated by Daria Krasnova
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In Brief

  • SHIB price dropped 19% in a month, creating a buying opportunity as whales increased their accumulation.
  • On-chain metrics like MVRV ratios indicate SHIB is undervalued, attracting more large transactions.
  • Despite whale interest, technical indicators show SHIB is vulnerable to further declines.
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The price of Shiba Inu (SHIB), a leading meme coin, has dropped by 19% over the past month. This decline has created a buying opportunity for those looking to trade against the market.

As a result, SHIB whales have increased their accumulation and taken advantage of the dip.

Shiba Inu Price Dip Invites the Whales

An on-chain analysis of SHIB’s market value to realized value (MVRV) ratios indicates that the meme coin currently offers a buying opportunity. At press time, this metric shows negative values across different moving averages.

According to Santiment’s data, SHIB’s 30-day and 90-day MVRV ratios are -1.7 and -24.07, respectively.

shiba inu mvrv ratio
Shiba Inu MVRV Ratio. Source: Santiment

When an asset’s MVRV ratio 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 increased their trading activity. This is evident from the recent spike in large transactions involving the altcoin. According to IntoTheBlock’s data, there has been a 128% increase in the number of SHIB transactions valued between $100,000 and $1,000,000 over the past month.

Read more: 6 Best Platforms To Buy Shiba Inu (SHIB) in 2024

Shiba Inu Large Transaction Coun
Shiba Inu Large Transaction Count. Source: IntoTheBlock

A surge in large transactions for an asset often signals a bullish trend. This is because retail traders typically view increased trading activity by whales as a positive sign, boosting their confidence. As a result, they are more likely to buy, which can lead to sustained price growth.

SHIB Price Prediction: Look Before You Leap

SHIB’s technical analysis suggests that despite increased interest from whales, the meme coin remains vulnerable to further decline.

The Chaikin Money Flow (CMF), which tracks the inflow and outflow of money, hovers at its center line and seems likely to dip below it. A CMF value below zero typically indicates market weakness, as it reflects a rise in liquidity exiting the asset, often seen as a precursor to a price drop.

Additionally, SHIB’s Relative Strength Index (RSI) stands at 43.7, below the neutral line, highlighting that selling pressure is currently stronger than buying activity.

Read more: Shiba Inu (SHIB) Price Prediction 2024/2025/2030

shiba inu price prediction
Shiba Inu Daily Analysis. Source: TradingView

If this trend persists, SHIB’s price could potentially fall to $0.000010. However, if the bulls regain market control and the demand for SHIB surges, it may push its price to $0.000018.

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Abiodun Oladokun
Abiodun Oladokun is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including decentralized finance (DeFi), real-world assets (RWA), artificial intelligence (AI), decentralized physical infrastructure networks (DePIN), Layer 2s, and meme coins. Previously, he conducted market analysis and technical assessments of various altcoins at AMBCrypto, utilizing on-chain analytics platforms like Messari, Santiment...
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