The price of Shiba Inu (SHIB), the second-largest meme coin by market volume, dropped by 19% last month. This decline was seen as a buying opportunity for investors looking to trade against the market trend. Amid this downturn, SHIB whales increased their holdings, taking advantage of the price drop.
Shiba Inu Price Drop and Whales
On-chain analysis of SHIB’s market value to realized value (MVRV) ratios suggests that the meme coin might currently offer a buying opportunity. As of the time of writing, the mentioned metric shows negative values across different moving averages.
According to data provided by Santiment, SHIB’s 30-day and 90-day MVRV ratios were recorded at -1.7 and -24.07, respectively.
When an asset’s MVRV ratio falls below zero, it indicates that the asset might be undervalued, meaning its current price is lower than the average price of all tokens in circulation. This level could be considered an opportunity for investors looking to “buy the dip.”
SHIB whales seem to have noticed this value drop, as an increase in trading activities was reflected in the charts. This situation is also evident from the recent increase in large transactions involving SHIB. According to data provided by IntoTheBlock, there was a 128% increase in SHIB transactions valued between $100,000 and $1,000,000 over the past month.
An increase in large transactions for a specific asset generally indicates a bullish trend. This is because purchases made by whales can encourage individual investors in the market, potentially accelerating buying activities.
How Much Will SHIB Be Worth?
Technical analysis of SHIB suggests that despite increased interest from whales, the meme coin might still face further declines.
The Chaikin Money Flow (CMF), which tracks money inflows and outflows, remains at a neutral level but shows the potential to fall into negative territory. Generally, a CMF in the negative region indicates outflows of liquidity, which is considered a bearish signal.
On the other hand, SHIB’s Relative Strength Index (RSI) remains below the neutral line at 43.7, indicating that the selling pressure is currently stronger than the buying activity.
In a scenario where the selling pressure continues, SHIB’s price could potentially drop to $0.000010. However, if the bulls gain strength and take control, the price could rise to $0.000018.
