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Shiba Inu jumps 12% as whales show cautious moves

Shiba Inu jumps 12% as whales show cautious moves

GrafaGrafa2024/09/27 00:25
By:Isaac Francis

Shiba Inu (CRYPTO:SHIB) has experienced a notable price increase of 12%, accompanied by a rise in its 7-day Market Value to Realized Value (MVRV) ratio, which reached 9.57%.

This uptick suggests that many SHIB holders are currently in profit, yet it also raises concerns about potential overbought conditions and an upcoming price correction.

While SHIB’s exponential moving average (EMA) indicators show bullish momentum, significant resistance is expected at the $0.0001763 mark, which could hinder further gains.

The recent surge in the MVRV ratio, which jumped from 3.1% to 9.57%, reflects the short-term profitability of SHIB, signaling that many investors may consider taking profits soon.

According to historical data, similar spikes in the MVRV ratio have led to notable corrections, as seen previously when the ratio exceeded 9%, resulting in declines of 50% and 18% in subsequent weeks.

Based on whale activity, it becomes clear that their cautious accumulation patterns could affect the longevity of the current rally.

Since late July, whales had offloaded substantial amounts of SHIB, which coincided with a 42% price drop.

While there has been some accumulation recently, it remains modest compared to past behaviors, suggesting a lack of confidence in the current price increase.

Despite the favorable EMA indicators, the significant resistance levels at $0.0001763 and $0.0001846 may pose challenges for SHIB to reach the $0.0002 threshold.

If whale activity continues to be cautious and the MVRV ratio pressures the market, SHIB might face a reversal, testing critical support levels around $0.00015 and $0.00013.

This scenario could result in a bearish shift in sentiment, potentially reversing recent gains.

At the time of reporting, the Shiba Inu price was $0.0000185.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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