Shiba Inu recovers from 6-month low: Assessing if SHIB will hold on

• Shiba Inu’s MVRV ratio has dropped below 1, which could show that the memecoin is in an accumulation phase. 
• SHIB whales have also purchased 1 trillion SHIB tokens within 24 hours, which could fuel the rally. 

Shiba Inu [SHIB] has staged a strong recovery after falling to a six-month low earlier this week. At press time, SHIB was trading at $0.0000163 after an 8% gain in 24 hours. 

While SHIB’s recent gains likely came from traders buying the dip, trading volumes had dropped by 32% per CoinMarketCap, showing that demand remains weak.

However, on-chain metrics suggest that buying pressure could rise. 

MVRV ratio flashes a buy signal 

Shiba Inu’s Market Value to Realized Value (MVRV) ratio recently fell to a multi-month low of 0.78, and while it has since recovered to 0.84, it still signals a buying opportunity. 

Source: IntoTheBlock

An MVRV ratio below 1 indicates most SHIB holders are in losses. However, this drop has always marked an accumulation phase.

Historically, a recovery in the MVRV ratio precedes a rally, potentially resulting in significant gains for the memecoin. Large addresses are already stepping in and accumulating SHIB.

Large holder netflows increased from -3.29 billion to 1.04 trillion. Whales accumulated more than 1 trillion SHIB tokens within 24 hours.

This surge marks the highest single-day accumulation by whales in nearly one month. And the whales actively bought the recent dip.

SHIB’s price analysis 

A look at Shiba Inu’s one-day chart shows that bullish trends are gaining strength. The MACD line was oscillating above the signal line while the histogram bars are positive, pointing towards high buying pressure. 

The RSI also confirmed this bullish thesis with the value of 56 showing that buyers are in control. However, buying pressure remains weak, hence the unsuccessful attempt to break resistance at $0.0000169.

Source: TradingView

If SHIB fails to breach this resistance level, it could cause a downturn towards support at $0.0000149. On the other hand, a rise in buying activity could see the altcoin target at the 1.618 Fibonacci level ($0.0000202). 

Can SHIB sustain its uptrend? 

For SHIB bulls to remain in control, buyer demand needs to remain strong.

Moreover, whales need to become more active, with the recent purchase of 1 trillion tokens showing that the memecoin could be in an accumulation phase. ‘

Read Shiba Inu’s [SHIB] Price Prediction 2025–2026

At the same time, if traders who bought during the dip begin to sell to minimize their losses, it could lead to a bearish reversal.