Shiba Inu Price Flashes Bottom Signs After 9-Day Drop

Shiba Inu price lost another crucial support yesterday, beginning it closer to the potential bounce zone. However, on-chain metrics signal a potential bottom, and a price rebound may be coming soon. Further, a technical analysis of the SHIB price may have a slight drawdown to cover before a potential price surge. Shiba Inu is down 2.7% daily and is trading at $0.00001325.

On-Chain Metrics at Shiba Inu Price Bottom

Data from Santiment shows that social dominance surged to monthly highs, which indicates that the asset is receiving a lot of attention and discussion on social media, which can sometimes precede significant market moves.

However, Shiba Inu price has been steadily dropping since August 24, suggesting that this attention may translate into something other than buying pressure. 

The surge in social dominance was accompanied by more positive sentiment than negative, suggesting that the community believes in the asset’s long-term potential despite short-term challenges. If the broader market conditions improve, the positive sentiment could drive a price recovery.

The Shiba Inu 30-day realized cap fell to a 10-month low, indicating that the recent transactions are happening at significantly lower prices than in the past ten months. This could mean investors’ confidence in the asset’s short-term prospect, potentially signaling further market correction.

The 30-day and 365-day Market Value to Realized Value (MVRV) are currently dropping along with the Shiba Inu price, indicating the average Shiba Inu holder is seeing reduced profitability. Additionally, it can point to negative market sentiment, as investors might lose confidence in the asset’s ability to recover in the short term.

However, a low MVRV ratio can be seen as an accumulation opportunity, as it indicates that the asset is undervalued compared to its historical realized value.

The recent price drop has pushed the total supply of SHIB in profit to a critical zone. Santiment data shows that only 30.71% of Shiba Inu holders are in profit. The asset’s profitability is at a historical support level and at the risk of dropping if the price continues dropping.

SHIB Price Eyes 3% Drawdown Before 16% Surge

Shiba Inu price is currently consolidating between demand and supply zones. Market makers hunted liquidity in the recent swing high, resulting in a drastic downturn.

SHIB Inu price prediction shows the asset may find support around $0.00001260 before rebounding to $0.00001460. This constitutes a 3% drawdown followed by a 16% price spike.

However, market makers may hunt for the sell-side liquidity, resulting in a quick run below the support level. Watch out for long bottom wicks and a surge in volume to confirm a rebound.

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Evans Karanja

Evans Karanja is a content writer and scriptwriter with a focus on crypto, blockchain, and video gaming. He has worked with various startups in the past, helping them create engaging and high-quality content that captures the essence of their brand. Evans is also an avid crypto trader and investor, and he believes that blockchain will revolutionize many industries in the years to come. When he is not writing, you can find him playing video games or chasing waterfalls.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.