Shiba Inu Faces Six-Month Low in Investor Activity, But MVRV Ratio Suggests Potential Buying Opportunity

Shiba Inu (SHIB) is currently feeling the effects of a long-term downtrend. Many investors are stepping back. However, these low prices might actually create a chance for some to accumulate more.

Since early March, Shiba Inu has been on a downward path. This has steadily chipped away at investor confidence. As the price drops, people are choosing to distance themselves from the asset. You can see this shift in the trading patterns.

Investor activity around Shiba Inu has dropped significantly. The ongoing bearish sentiment has made it less attractive for both new and existing investors. This is clear from the reduced trading volumes and overall market engagement.

Right now, participation in Shiba Inu is at its lowest in six months. But here’s the silver lining: the current low prices could present a buying opportunity for SHIB investors. This is highlighted by the Market Value to Realized Value (MVRV) ratio, which looks at profit and loss for investors.

Currently, Shiba Inu’s 30-day MVRV is at -8%. This indicates losses but also hints at potential buying pressure. Historically, when the MVRV for SHIB sits between -8% and -18%, it often signals the start of recoveries and rallies. This range is viewed as a good time to accumulate more.

Now, let’s talk about the price. Shiba Inu is trading at $0.00001345 and is trying to break through a five-month downtrend line. Since March, it has only managed to breach this line three times.

If accumulation happens, it could spark some bullish momentum for SHIB. This might push the price up to $0.00001473. If that level turns into support, Shiba Inu could continue its rally.

However, if it fails to break through this level, we might see consolidation between $0.00001473 and $0.00001281. This scenario could erase any bullish outlook and reinforce the current bearish sentiment.