Shiba Inu NVT Ratio Indicates Potential Price Correction
Recent data from the on-chain market intelligence platform Glassnode reveals a significant surge in Shiba Inu’s Network Value to Transactions (NVT) ratio. This surge indicates that the meme coin’s NVT is currently outpacing its price, hinting at a potential bearish trend and a forthcoming price correction for Shiba Inu.
Reduced Correlation with Bitcoin Poses Risks for Shiba Inu
Aside from the NVT ratio, Shiba Inu investors should also take note of the decreased correlation with Bitcoin, as reported by IntoTheBlock. The past strong positive price correlation of over 0.9 between Shiba Inu and Bitcoin has dropped to 0.52, signaling a weaker link between the two assets. Additionally, only 51% of Shiba Inu holders are currently in profit, making the meme coin vulnerable to significant sell-offs should prices rise further.
Positive Signs on the Horizon for Shiba Inu
- Large transactions in Shiba Inu on the rise, indicating potential accumulation by crypto whales
- Notable increase of over 2% in large transactions over the past week
- 365.69 billion SHIB traded in the last 24 hours
- Record-breaking 2.14 trillion SHIB in large transactions on July 22
Predictions Point to Potential Soaring Prices for Shiba Inu
According to crypto analyst Javon Marks, Shiba Inu could see a significant price increase, potentially surpassing the $0.00003 mark in the near future. Marks highlighted a macro Hidden Bullish Divergence with the Relative Strength Index (RSI) for SHIB, suggesting a strong possibility of a full recovery and continuation of its bull run.
- Marks forecasts a price recovery of over 162%, pushing Shiba Inu towards the $0.0000456 range
- Speculations of Shiba Inu breaking out of a larger resistance level, with a price target of $0.000081
Current Trading Status of Shiba Inu
At present, Shiba Inu is trading around $0.00001718, showing a gain of over 2% in the last 24 hours based on data from CoinMarketCap.
Hot Take: Evaluating Shiba Inu’s Potential in the Crypto Market
As an investor looking into Shiba Inu, it’s crucial to consider all factors at play to make informed decisions. The evolving NVT ratio and correlation with Bitcoin provide insights into potential price movements. While bullish indicators like increased large transactions hint at positive momentum, one must remain cautious of impending corrections. Keeping a close eye on market developments and expert predictions can guide your investment strategy in navigating the volatile world of cryptocurrencies.
Sources:
– Glassnode
– IntoTheBlock
– CoinMarketCap
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