Shiba Inu (SHIB) worried its investors last week, a 20 %decrease. However, some On-Chain Data show that Shıb is currently priced compared to the market value and that it can offer the opportunity to purchase. Nevertheless, it may be early to say that Shıb’s fall trend is completely ended.
Shıb is traded below its value in the market, but there are risks
Shıb’s market value / real value (MVRV) ratio is currently -29.35%. This shows that SHIB’s current market price is below the average cost of investors.
The MVRV ratio is used to determine whether an asset is over -valuable or low -valuable. If the ratio is positive, the market value is higher than the real value, which means that the asset is expensive. The negative MVRV ratio indicates that most of the investors are damaged and that the asset provides a possible recovery opportunity.
Historically, negative MVRV rates have created the opportunity for investors watching the strategy of “buy it from the bottom, sell from the top” strategy. However, it remains unclear whether Shıb can recover in the short term under the current market conditions.
In particular, the negative funding rate of Shıb at -0.03% shows that there is a strong decline expectation between investors.
Price Estimation: Will Shiba buyers come into play?
According to technical analysis data, Chaikin Money Flow (CMF) indicator also shows that sales pressure is high. Currently, this indicator, which is at -0.03, indicates that the money entering the market is insufficient and that investors continue to sell.
If the demand for SHIB continues to remain weak, the price seems to be possible to drop to $ 0.000014.
On the other hand, if there is a decrease in sales edition and the investor interest increases, the price of SHIB may rise to $ 0.000016.
The current market data show that Shıb offers the opportunity to purchase, but the decline trend has not yet broken. Therefore, investors need to closely follow market movements.
