While the week initially kicked off with a slight dip in prices, there is now a clear push towards recovery, as seen in the price chart. Shiba Inu, in particular, has retested its support levels, attracting buyers who were eager to accumulate and drive its price upwards. It’s worth highlighting that various on-chain indicators are currently reflecting bullish sentiment, with traders increasingly favoring long positions during this price volatility.
SHIB’s Volatility Holds At 60%
Shibarium, the network behind the Shiba Inu memecoin, has been experiencing significant achievements, impacting the demand for SHIB. Notably, despite a recent price drop in SHIB, there’s been an increase in buying interest. This uptick in acquisitions has sparked a recovery rally for the meme coin.
Additionally, Shibarium has shown a notable turnaround in its transaction activity. In a remarkable milestone, the transaction count on Shibarium jumped to 43,690 on November 23 from 29,280 just a day earlier. However, according to the latest data from Shibarium Scan, this number has since decreased to 15,680.
Shibarium has reached a significant peak, surpassing a total of four million transactions. According to IntoTheBlock, Shiba Inu’s volatility has maintained stability even amidst a market correction, indicating that trading interest remained constant during this period.
With volatility holding above 60%, there is potential for a bullish comeback. Furthermore, a decreasing MVRV (Market Value to Realized Value) ratio indicates a favorable scenario for buyers. As Shiba Inu’s MVRV has fallen from 1 to its current level of 0.429, it is more likely that holders will hold their assets.
A high MVRV ratio suggests traders historically lean towards selling, while a negative MVRV implies the asset is undervalued, leading to potential losses if all SHIBs were sold at the current price.
What’s Next For SHIB Price?
Sellers attempted to drive SHIB’s price below its 200-day Exponential Moving Average (EMA) on the 4-hour price chart, but buyers stepped in, as indicated by the rebound. In recent hours, SHIB’s price has been attempting to break above the immediate resistance levels to regain old momentum. As of writing, SHIB price trades at $0.00000832, surging over 1.5% from yesterday’s rate.
Shiba Inu is aiming to surge above immediate fib channels to strengthen buyers’ confidence. However, sellers are set to open short positions during a market top. A drop below the upward trend line will signal a rising selloff, which might send the memecoin toward a bearish consolidation of around $0.0000075.
Conversely, if the price continues to bounce back from the support level, it will imply that buyers are active at lower prices. The buyers would then aim to drive and maintain the price above $0.0000087. Should they succeed, the price might gain momentum and potentially rise to $0.0000096.