The Shiba Inu (SHIB) The network value to transactions (NVT) ratio has come into focus, with the meme coin currently enjoying an uptrend. However, this metric suggests that Shiba Inu may soon encounter a roadblock on its journey to $0.00003.
The proportion of Shiba Inu NVT is increasing
On-chain market intelligence platform data Glassnode shows that Shiba Inu’s NVT has witnessed a massive increase and is currently way ahead of the meme coin’s price. This is significant because it presents a bearish outlook for Shiba Inu and suggests a possible price correction for the meme coin.
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The NVT ratio is not the only metric that Shiba Inu investors should be concerned about. Data from the market intelligence platform Inside the block shows that Shiba Inu’s correlation with Bitcoin has been drastically reduced since the leading cryptocurrency started enjoying an impressive recovery.
Until now, Shiba Inu’s correlation with Bitcoin was above 0.9, indicating a strong positive price correlation. However, this value has now dropped to 0.52, indicating a lower correlation between the two prices. Furthermore, only about 51% of Shiba Inu Carriers are currently in the money, meaning the meme coin is at risk of significant sell-offs as the remaining 49% that are not in the money look to breakeven when the meme coin records higher prices.
However, a few other on-chain metrics paint a bullish picture for Shiba Inu, which could help avoid such a price correction and help sustain the meme coin’s current uptrend. One of them is the notable increase in large Shiba Inu transactions, suggesting that crypto whales may be accumulating meme coins in anticipation of higher prices.
Data from IntoTheBlock shows an increase of over 2% in these large transactions over the past seven days. Other data shows that 365.69 billion SHIB were traded in the past 24 hours. Meanwhile, these large transactions recorded a seven-day high on July 22, when these investors traded 2.14 trillion SHIB.
A rise to $0.00003 is still possible
Crypto Analyst Javon Marks recently provided a bullish narrative for Shiba Inu, predicting that the meme coin could rise above $0.00003 soon. He stated that SHIB confirmed a Hidden Bullish Macro Divergence with its Relative Strength Index (RSI)which indicates that a full recovery and continued upward movement may be on the horizon.
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He added that this confirmation sets Shiba Inu for a price rally of over 162%, sending its price into the $0.0000456 range. Interestingly, Marks also stated that Shiba Inu could rise further as it may break a larger resistance structure, putting a target price of $0.000081 in sight.
At the time of writing, Shiba Inu was trading around $0.00001718, up over 2% in the past 24 hours, according to data from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com