The price of Shiba Inu has fallen to levels last seen in late September 2021 before the altcoin started its well-known exponential run to new highs. This massive crash comes at a time when fear is ravaging the entire market and panicked investors are selling their holdings in a frenzy.

Shiba Inu Price And Its Significant Levels

Shiba Inu’s price consolidation between Feb. 2 and May 5 formed a descending triangle. This technical setup features lower highs and equal lows. Drawing trendlines connecting these trendlines reveals a descending triangle.

The target for this pattern is obtained by measuring the distance between the highest peak or first swing high and the base of the triangle and adding it to the breakout point. For Shiba Inu, this measure is 37% and adding this value to the breakout point reveals a target of $0.0000125.

Due to the panic selling in the crypto markets, the price of Shiba Inu has crashed by 57% in the past six days, far below its target. This move also filled the fair value gap that stretched from $0.000094 to $0.0000135 and is currently hitting the $0.000094 support level.

As Bitcoin price appears to be triggering a relief rally, investors can expect Shiba Inu price to see a surge in buying pressure as well, especially from market participants looking to collect SHIB at a discount. This development is likely to push SHIB up 31% from its current position to mark the immediate resistance barrier at $0.0000135.

Given the bearish outlook of the crypto ecosystem, the price of Shiba Inu is unlikely to continue higher. Therefore, interested investors could open a short position here. A rejection of this hurdle could cause another crash in SHIB and push it to $0.0000094.

If the sellers break through this barrier, the price of Shiba Inu could drop to $0.0000061. This move would mark a 55% drop from $0.0000135 and is likely where the bottom is.

SHIB perpetual futures | Source: Saniment

This move for the Shiba Inu price is supported by the 30-day Market Value to Realized Value (MVRV) model. This indicator is used to track the average profit/loss of investors who have purchased SHIB tokens in the past month.

Light at the end of the tunnel

In general, a negative value indicates that these holders are underwater and a positive value indicates that holders are making a profit. In the latter condition, the chance of a sale is high.

Based on Santiment’s back tests, a reading between -10% and -15% indicates that short-term holders are at a loss and that long-term holders tend to accumulate under these conditions. Therefore, the above range is called an “opportunity zone” as the risk of a sell-off is less.

30-day MVRV ratio | Source: Saniment

Currently, the 30-day MVRV is hovering around -46%, which is a perfect accumulation zone. The last time the index fell to these levels, SHIB was in an accumulation zone, eventually leading to a breakout.

This time, however, the market structure is weak and can be interpreted as a short-term buy signal.

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