Shiba Inu (SHIB) Price Recovery Likely as Losses Run up by 42%

Shiba Inu (SHIB) prices have recovered from four-month lows and are looking to recoup losses seen over the past month.

With the selling likely to pause for the time being, investors also have a chance to make the most of this opportunity.

Shiba Inu investors suffer huge losses

While Shiba Inu prices only fell 15% last week, the impact on investors was three times larger: total supply of profits fell nearly 42%, dropping from 75% to 33% in a single day.

This is because approximately SHIB 434 trillion, or $6.7 billion worth, was purchased between $0.00001900 and $0.00001500. This supply became completely unprofitable yesterday as the meme coin dropped to an intraday low of $0.00001281. Such a large supply will not be sold until it is profitable again, so investors will likely refrain from selling at this time.

Supplying Shiba Inu breeds is profitable. Source: Santiment

Moreover, many investors who expect a recovery and profits will likely turn to accumulation, and the market value to realized value (MVRV) ratio suggests a good opportunity to do so.

The MVRV ratio measures investors’ profits and losses. Currently, Shiba Inu’s 30-day MVRV is -14.5%, indicating a loss, which could lead to buying pressure.

Historically, when SHIB’s MVRV is between -7% and -18%, it typically signals the beginning of a recovery and upside and is an opportunity zone to buy more, which could lead to higher Shiba Inu prices.

Read more: How to buy a Shiba Inu (SHIB) and everything you need to know

Shiba Inu MVRV ratio.
MVRV ratio for Shiba Inu. Source: Santiment

SHIB Price Prediction: Critical Range

The range of $0.00001473 to $0.00002093 is crucial for Shiba Inu price as this range contains 73% of SHIB’s circulating supply, so the meme coin may encounter significant resistance here.

Still, investors’ attempts to recoup their profits will motivate SHIB to rise, and a breakout above $0.00002093 could give the altcoin a chance to make profits.

Read more: Shiba Inu (SHIB) Price Prediction 2024/2025/2030

Shiba Inu Price Analysis.
Shiba Inu Price Analysis. Source: Trading View

However, if this breakout fails, Shiba Inu price is likely to stabilize within this range until stronger bullish signs help the coin escape, otherwise the bullish thesis will be invalidated.

Disclaimer

In accordance with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. While BeInCrypto strives to produce accurate and unbiased reports, market conditions are subject to change without notice. Always conduct your own research and consult with an expert before making any financial decisions. Please note that our Terms of Use, Privacy Policy and Disclaimer have been updated.

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