Shiba Inu’s soaring MVRV rate portends strength on the horizon! Will SHIB prices meet buyer demand?
The meme coin sector has seen its bullish momentum stall recently as the market has struggled to establish a new upward trend. Importantly, the price correction began as Shiba Inu experienced a setback at the resistance level. Nonetheless, various on-chain indicators offer bullish promise for SHIB price. Accordingly, analysts expect a new bullish cycle to begin next week.
Shiba Inu MVRV surges
Based on information collected by the Shibburn wallet tracker, which collects data from Etherscan, the Shiba Inu community has made a significant move to burn SHIB coins. As a result, approximately 20 billion SHIB tokens were successfully removed from circulation.
At the same time, the development of Shibarium layer-2 solutions is achieving new results. Nonetheless, SHIB price continues to struggle to form a bullish pattern, reducing holders’ confidence. Additionally, large moves by whales in recent weeks have created selling pressure near resistance levels. According to data, 2.28 trillion Shiba Inu tokens (worth $23.58 million) were moved from Binance to an unknown wallet today.
But even amidst this weak news, the MVRV rate offers some silver linings. Shiba Inu MVRV rates have been on the rise since September, according to IntoTheBlock data. MVRV (Market Value to Realized Value) is a ratio that compares a cryptocurrency’s current price to its realized price and is calculated by dividing the market capitalization by the realized capitalization. Basically, it evaluates “unrealized profits” by comparing the current price to the average acquisition price of the coin or token.
SHIB’s MVRV ratio is now at 0.55, up from its previous low of 0.35. An upward trend in the MVRV ratio from low levels suggests that the SHIB market has transitioned from undervalued to expected growth, possibly indicating the start of a bull cycle.
What’s next for SHIB pricing?
Shiba Inu is currently engaged in a fierce battle between buyers and sellers centered around the 20-day exponential moving average (EMA). The price declined after being rejected at $0.000012. At the time of writing, the SHIB price is trading at $0.00001075, down more than 2.7% from yesterday’s rate.
Buyers are currently protecting the price from falling below the rising support line. As sellers dominate closer to higher levels, buyers are finding it difficult to keep SHIB at resistance levels. If the sellers take advantage and pull the price below the support, SHIB price may decline towards the important support at $0.000009.
For buyers to assert dominance, they would need to effectively increase and sustain the value of SHIB above the $0.000012 to $0.0000135 resistance range. Achieving this could shift the momentum in their favor. A rise above $0.000012 could trigger a stronger rally, potentially reaching $0.000016. However, RSI below the midline suggests further modification to SHIB.