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Shiba Inu shows accumulation potential despite ongoing price decline

Shiba Inu shows accumulation potential despite ongoing price decline

GrafaGrafa2024/08/19 06:45
By:Mahathir Bayena

Shiba Inu (CRYPTO:SHIB) has been in a persistent downtrend since March, leading to a significant decline in investor participation and confidence.

As the price continues to fall, investor engagement has reached its lowest point in six months, reflected in reduced trading volumes and overall market activity.

Despite this bearish sentiment, the current low prices present a potential opportunity for accumulation, as indicated by the Market Value to Realized Value (MVRV) ratio.

The MVRV ratio, which measures the profit and loss of investors, currently stands at -8% for Shiba Inu, signaling potential buying pressure.

Historically, when the MVRV ratio falls between -8% and -18%, it often marks the beginning of recovery phases and rallies.

This suggests that the current price levels could be an accumulation zone for SHIB investors, offering the potential for future gains if market conditions improve.

Shiba Inu’s price is currently $0.00001345, with the possibility of breaking through the five-month downtrend line.

The meme coin has attempted to breach this resistance line three times since March, and another successful attempt could signal the start of a bullish trend.

If Shiba Inu manages to flip the $0.00001473 level into support, it could extend its rally and invalidate the current downtrend.

However, if Shiba Inu fails to breach this resistance level, the price may continue to consolidate between $0.00001473 and $0.00001281.

This could reinforce the bearish outlook and prolong the current downtrend, making the near-term prospects for SHIB uncertain.

Investors will be closely watching these key levels to determine the potential for a price recovery.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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