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.

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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.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.