As a seasoned researcher with a deep understanding of cryptocurrencies and their underlying metrics, I find the current state of Shiba Inu (SHIB) intriguing. The meme coin has been on an uptrend, but recent data from various on-chain market intelligence platforms have raised some red flags.
1. The value of the Shiba Inu (SHIB) network relative to transactions (NVT ratio) has gained attention, as the meme currency is experiencing an upward trend. This NVT ratio, though, hints that Shiba Inu may encounter a barrier in its pursuit of reaching $0.00003.
Shiba Inu NVT Ratio Is On The Rise
The latest data from Glassnode’s on-chain market intelligence reveals that Shiba Inu’s Network Value to Transactions Ratio (NVT) has experienced a substantial surge, surpassing the value of its current price. This finding carries importance as it suggests a bearish trend for Shiba Inu and may indicate an impending correction in the meme coin’s price.
The NVT ratio isn’t the sole metric that investors in Shiba Inu need to focus on. According to market intelligence data from IntoTheBlock, the correlation between Shiba Inu and Bitcoin has significantly decreased since Bitcoin started experiencing a strong recovery.
Previously, the relationship between Bitcoin’s price and Shiba Inu’s was extremely strong with a correlation coefficient above 0.9. This suggested that when Bitcoin’s price rose, Shiba Inu’s typically followed suit. However, this correlation has weakened, dropping to 0.52. Consequently, the prices of these two assets are now less synchronized. Furthermore, approximately half of Shiba Inu holders currently have profits, while the other half is still underwater and looking to breakeven. This situation puts the meme coin at risk for substantial sell-offs as the latter group seeks to recoup their losses when prices rise.
Some other encouraging signs on the blockchain for Shiba Inu could prevent a potential price correction and maintain its ongoing upward trend. For instance, there’s been a significant rise in large transactions associated with Shiba Inu. This development might indicate that cryptocurrency whales are buying up the meme coin in expectation of future price increases.
1. According to IntoTheBlock’s data, there has been a surge of more than 2% in significant transactions over the past week. Additionally, it was revealed that approximately 365.69 billion SHIB were exchanged within the last day. Notably, these substantial trades reached their highest point on July 22 when investors transacted a staggering 2.14 trillion SHIB.
A Rise To $0.00003 Is Still Possible
Expert here: Recently, cryptocurrency analyst Javon Marks expressed optimism towards Shiba Inu, suggesting that the meme coin could surpass $0.00003 in the near future. Marks pointed out that SHIB has exhibited a hidden bullish divergence with its Relative Strength Index (RSI), which is an indication that a complete recovery and potential extension of its bullish trend might be imminent.
1. The statement indicates that the confirmation contributes to a projected price increase of more than 162% for Shiba Inu, pushing its value towards the range of $0.0000456. Remarkably, Marks also posited that the price could surge even higher due to the possibility of breaking through a larger resistance barrier, aiming at a potential price level of $0.000081.
Currently, Shiba Inu coins are being exchanged for approximately 0.00001718 USD each, marking a rise of more than 2% in the past 24 hours as per statistics from CoinMarketCap.
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2024-07-29 23:11