The price of Shiba Inu (SHIB), a leading meme coin, has dropped by 19% over the past month. This decline has created a buying opportunity for those looking to trade against the market.
As a result, SHIB whales have increased their accumulation and taken advantage of the dip.
Shiba Inu Price Dip Invites the Whales
An on-chain analysis of SHIB’s market value to realized value (MVRV) ratios indicates that the meme coin currently offers a buying opportunity. At press time, this metric shows negative values across different moving averages.
According to Santiment’s data, SHIB’s 30-day and 90-day MVRV ratios are -1.7 and -24.07, respectively.
Shiba Inu MVRV Ratio. Source: Santiment
When an asset’s MVRV ratio falls below zero, it indicates that the asset is undervalued, meaning its current price is lower than the average price of all its tokens in circulation. This creates an opportunity for investors looking to “buy the dip.”
SHIB whales have noticed this undervaluation and increased their trading activity. This is evident from the recent spike in large transactions involving the altcoin. According to IntoTheBlock’s data, there has been a 128% increase in the number of SHIB transactions valued between $100,000 and $1,000,000 over the past month.
Read more: 6 Best Platforms To Buy Shiba Inu (SHIB) in 2024
Shiba Inu Large Transaction Count. Source: IntoTheBlock
A surge in large transactions for an asset often signals a bullish trend. This is because retail traders typically view increased trading activity by whales as a positive sign, boosting their confidence. As a result, they are more likely to buy, which can lead to sustained price growth.
SHIB Price Prediction: Look Before You Leap
SHIB’s technical analysis suggests that despite increased interest from whales, the meme coin remains vulnerable to further decline.
The Chaikin Money Flow (CMF), which tracks the inflow and outflow of money, hovers at its center line and seems likely to dip below it. A CMF value below zero typically indicates market weakness, as it reflects a rise in liquidity exiting the asset, often seen as a precursor to a price drop.
Additionally, SHIB’s Relative Strength Index (RSI) stands at 43.7, below the neutral line, highlighting that selling pressure is currently stronger than buying activity.
Read more: Shiba Inu (SHIB) Price Prediction 2024/2025/2030
Shiba Inu Daily Analysis. Source: TradingView
If this trend persists, SHIB’s price could potentially fall to $0.000010. However, if the bulls regain market control and the demand for SHIB surges, it may push its price to $0.000018.
