Is Shiba Inu (SHIB) a Good Buy Right Now?

Shiba Inu (SHIB), the second largest meme coin, experienced a significant dip on August 5, hitting a five-month low before rebounding a few days later.

This bounce raised hopes of a price surge, but SHIB has not yet met these expectations, though its current price might be an attractive buy.

Santiment’s analysis reveals insights through SHIB’s price and Daily Active Addresses (DAA). A rise in DAA typically hints at price growth, while a drop suggests the opposite. Currently, SHIB’s DAA indicates a buying opportunity with a 12.17% positive divergence.

Supporting this, the Market Value to Realized Value (MVRV) ratio, which assesses market profitability, shows SHIB is undervalued with a ratio of 0.69. This implies more unrealized losses than gains, suggesting potential for accumulation before a price increase.

Despite positive on-chain signals, technical analysis shows SHIB in a bearish descending channel since mid-July. At $0.000014, it hasn’t broken out of this pattern, indicating limited near-term upside. The Bull-Bear Power (BBP) indicator also favors bears, pointing to potential price consolidation between $0.000012 and $0.000014, or a possible drop to $0.000010. However, increased buying pressure could push the price up to $0.000017.