The market value of the second-largest meme coin, Shiba Inu (SHIB), is ahead of many competitors in various aspects. Particularly, the success in building its own ecosystem is a significant detail that increases optimism about its long-term future. Recently, the accelerated rallies of Shiba Coin have raised questions about its future dollar value.
Shiba Inu (SHIB)
Named after the dog breed that has become almost synonymous with meme coins, Shiba Coin shone in 2021, increasing in value by tens of times. Now, years after reaching its all-time high (ATH), it is trying to convince investors of its potential to reach a new peak by shedding another zero from its price.
Just a week ago, Shiba Inu’s Market Value to Realized Value (MVRV) ratio was around 0.5. But what does this mean? If any altcoin has such a low MVRV ratio, it indicates that its price is considered cheap and it fails to attract investor appetite, thus lacking confidence. However, as Bitcoin accelerated its rally above $60,000, this ratio suddenly jumped to 1.29. This suggests that something has changed, indicating an overvalued level.
The current situation suggests two possibilities. Either investors who are in profit with SHIB will start selling, or we will continue to see the parabolic rally at this pace. Both scenarios promise high volatility, making sideways movement unlikely for now. The determining factor will likely be whether the price of BTC can sustainably stay above $65,000.
Shiba Coin Predictions
Currently, 58.31% of the total SHIB supply is held by large investors. This is a 1% decrease from three days ago, indicating that whales have not adopted a sharp selling trend despite the massive rally. Additionally, the notable holding of 58.3% by long-term investors suggests that confidence in the token remains strong. The next phase will likely involve more new investors coming in with the rise in BTC price, offering higher bids for the assets held by long-term holders, thus pushing the price up.
The IOMAP chart shows key price levels for SHIB investors. The $0.000039 level is where many investors are profitable, confirming its potential as a resistance zone.
If SHIB investors can achieve strong closes above this region, the price could rise to $0.000045 and $0.00006, potentially reaching back to the ATH zone.
