Shiba Inu （SHIB） is nearing a critical support level as the token has seen a 19.33% decline over the past 30 days. On-chain analysis suggests that the token may be approaching a bottom, which could signal a potential reversal in the near future.
Points
- Market Decline: SHIB has dropped 19.33% in the last 30 days, raising concerns among investors.
- Critical Support Level: On-chain analysis indicates that SHIB is approaching a key support level, which could be pivotal for its price direction.
- Potential for Reversal: If SHIB reaches its critical support, a price rebound could be on the horizon, offering potential upside for investors.
Shiba Inu （SHIB）, once the darling of the meme coin market, has experienced a significant downturn over the past month, with its price falling by 19.
33%. This sharp decline has brought SHIB closer to a critical support level, a point at which the price could potentially stabilize or even reverse. Investors and traders are closely watching this level, as it may determine the token’s near-term direction.
The key metric driving this analysis is the Market Value to Realized Value （MVRV） Long/Short Difference, which indicates whether short-term holders are making more profits than long-term holders. As of now, the MVRV Long/Short Difference for SHIB stands at -14.44%. Historically, SHIB’s price has tended to bottom out when this metric reaches around -24.05%. This suggests that while SHIB is nearing its potential bottom, there may still be room for a further 10% decline before a reversal occurs.
On-chain data further supports the idea that SHIB could be approaching a turning point. The number of holders who accumulated SHIB within the last 30 days has increased by 11%, indicating growing confidence among short-term traders. If this trend continues, it could signal that the market is preparing for a bullish turnaround.
However, SHIB’s current price action on the daily chart remains bearish. The token has been stuck in a descending channel since mid-July, with the upper trendline acting as resistance and the lower trendline providing support. At the moment, SHIB is trading below the upper trendline, which suggests that the downtrend could continue unless there is a decisive breakout.
If SHIB breaks below its current support, the next level to watch would be around $0.000012. A drop to this level would represent a further 10% decline from its current price. However, if SHIB can hold this support and reverse upward, it could target a move back to $0.000015 or higher.
For investors, this critical support level represents both a risk and an opportunity. A breakdown could lead to further losses, while a successful test of support could offer a buying opportunity ahead of a potential price rebound. As always, caution is advised, and investors should consider their risk tolerance and market conditions before making any moves.
解説
- Understanding MVRV Long/Short Difference: The MVRV Long/Short Difference is a key on-chain metric that helps identify market tops and bottoms by comparing the profitability of short-term and long-term holders. A negative reading, like the current -14.44%, suggests that short-term holders are at a disadvantage, which can often precede a market bottom.
- The Importance of Support Levels: Support levels are critical in technical analysis as they represent a price point where a token typically finds buying interest strong enough to prevent further declines. SHIB’s current support is being closely monitored by traders, as a break below this level could lead to significant downside, while a successful test could trigger a rebound.
- Market Sentiment and Price Reversals: Market sentiment plays a crucial role in price reversals. The increasing number of SHIB holders and the potential bottoming pattern indicated by on-chain data suggest that sentiment could be shifting. If the market turns bullish, SHIB could see a recovery from its current levels.