Key Points:
- Shiba Inu price nears support levels, hinting at a possible rebound.
- Community vote on 37.5 ETH donation could impact SHIB’s future.
- Social media buzz and low MVRV ratio suggest a price increase.
Shiba Inu Price Close to Support Levels, Rebound Possible
Shiba Inu (SHIB) is showing signs of hitting a bottom after a long price drop. The token is now near important support levels, and the community is facing a key decision. Shytoshi Kusama, the project’s lead developer, has started a vote that could greatly affect Shiba Inu’s future. The vote is about how to use a large donation made to the SHIB DAO (Decentralized Autonomous Organization).
The donation of 37.5 ETH was made by the fast-food chain Welly. The community has four options for how to use this money. One option is to burn SHIB tokens, which some think could reduce the supply and increase the price. However, some key members of the community, like Jolt and Lola, are against burning the tokens. They believe burning would have little impact on the token’s value. They suggest using the funds to help grow Shibarium and support new SHIB-based projects. So far, 84.55% of voters are supporting these alternative ideas rather than burning the tokens.
Community Buzz and Market Sentiment
Data shows that the Shiba Inu community is very active right now, with more people talking about SHIB on social media than at any time this month. This increase in social media buzz often comes before big price movements. The community’s mood has also been more positive than negative, which shows that many still believe in SHIB’s long-term success, even though the price has struggled lately.
Despite all this attention, the price of Shiba Inu has been going down steadily since August 24. This suggests that the increased social media activity has not yet turned into buying pressure that could lift the price.
Shiba Inu’s 30-day realized cap, which measures the average price at which SHIB was last moved, is now at a 10-month low. This means that recent transactions have been happening at much lower prices compared to the last ten months. This could suggest that confidence in SHIB’s short-term future is low, which might lead to further price drops. The Market Value to Realized Value (MVRV) ratio, which compares SHIB’s current market value to its realized value, is also falling. This indicates that the average SHIB holder is seeing smaller profits, which could be a sign of negative market sentiment. However, a low MVRV ratio can also indicate that SHIB is undervalued, possibly making it a good buying opportunity.
Chance for SHIB Price Recovery
The recent price drop has pushed the percentage of SHIB holders in profit to a critical level. Currently, only 30.71% of Shiba Inu holders are in profit. If the price keeps dropping, even more holders will be at a loss.
Despite the current price decline, there is still hope for a recovery. Shiba Inu’s price is now stuck between levels where demand and supply meet. Technical analysis shows that the price may drop by 3% before it could rise by 16%. The price is expected to find support around $0.00001260 before possibly climbing to $0.00001460. However, there is a risk that market makers could push the price lower to capture sell-side liquidity. Investors should watch for signs like long bottom wicks on the price chart and a spike in trading volume, which could signal a rebound.
Looking Forward
Shiba Inu is at a crucial point, with important support levels being tested and a community vote that could shape its future. While the token has seen a steady decline, there are signs that it might recover, especially if the market improves and the community remains supportive. Investors should stay alert, as the next moves in SHIB’s price could be significant.
