- The price of Shiba Inu (SHIB) has set two lower highs and two equal lows since the crash on May 12.
- One glimmer of hope for SHIB investors is that Bitcoin (BTC) is displaying a bullish outlook.
- An opportunity zone is present as the on-chain MVRV reaches a low range.
The price of Shiba Inu (SHIB) has set two lower highs and two equal lows since the crash on May 12. Connecting the swing points using trend lines results in the formation of a descending triangle, which is suggestive of a 26% move to $0.0000150. This is obtained by measuring the distance between the first swing high and low to the breakout point at $0.0000118.
One glimmer of hope for SHIB investors is that Bitcoin (BTC) is displaying a bullish outlook. Therefore, investors can expect Shiba Inu to follow suit. However, SHIB’s price may retest the base of the descending triangle at $0.0000106 before the breakout occurs.
One of the most telling on-chain metrics that indicate that SHIB investors are bullish is the 30-day Market Value to Realized Value (MVRV). This metric is used to determine the average profit/loss of investors that purchased SHIB over the past month.
According to research by Santiment, an MVRV value below -10% to -15% is indicative of losses for short-term holders, making them less likely to sell. However, this is also the point at which long-term holders accumulate. This is why this zone is also referred to as the opportunity zone.
SHIB posts 24-hour losses (Source: CoinMarketCap)
Looking at CoinMarketCap, the price of SHIB currently sits at around $0.00001088 – a 6.59% fall in price over the time period. The 24-hour price movement has also pushed the 7-day performance of SHIB into the negative, as its price is down 4.50% in the last week.