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Despite the volatility and recent challenges that Shiba Inu ($SHIB) has faced, the meme coin could be set to withstand potential setbacks. Likewise, $SHIB holders, who have dealt with a long period of uncertainty, appear to be keeping hopes alive as the cryptocurrency flashes signs of stability.
Will these investors who have placed sizable bets on $SHIB avoid major losses? This on-chain gives details about the possibility.
Shiba Inu Holders Are Buying the Dip
According to data from IntoTheBlock, Shiba Inu’s large holders’ netflow has increased by 265% in the last seven days. This metric gauges if investors are stacking a cryptocurrency in large volume or distributing it.
Assuming the large holders’ netflow dropped from last week’s figure, this would have implied a rise in distribution. Price-wise, this decline might have influenced a drop in the cryptocurrency’s value.
Since the netflow increased significantly, some of the top $SHIB holders have purchased more tokens than they have sold. If sustained, this action could drive a price increase for the cryptocurrency.
Read more: 12 Best Shiba Inu ($SHIB) Wallets in 2024
Currently, $SHIB’s price is $0.000013, a 46.58% decrease within the last 90 days. However, according to the Sharpe ratio, cryptocurrency seems to have a chance of producing a better return.
In simple terms, the Sharpe ratio compares the potential return on an investment with its risk. The higher the ratio, the higher the chances of producing a good return. Conversely, when the ratio drops, it implies that the risk might not be worth the potential investment.
According to data from Messari, Shiba Inu’s Sharpe ratio, which was -4.52 on August 5, has since recovered and now stands at 0.58. This notable increase increase suggests that purchasing Shiba Inu ($SHIB) at its current value could prove worthwhile, provided broader market conditions stabilize.
If the positive trend continues, investors who recently added the meme coin to their portfolios might benefit from a potential price surge.
$SHIB Price Prediction: A Run to $0.000016 Is Viable
$SHIB’s daily chart shows that the token has been in a six-month downtrend. But this ugly reality might soon end. While a quick uptrend might not occur within a short period, it seems unlikely that $SHIB would tumble again as it did during the first week of August.
A solid support level at $0.000012 could reinforce this bias, potentially pushing the token toward an upward reversal. As illustrated in the chart below, $SHIB’s price could surge to $0.000016 if backed by strong buying pressure.
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In a highly bullish market, Shiba Inu ($SHIB) could rally toward $0.000020. However, this forecast may be invalidated if large holders cease their recent accumulation. In such a case, $SHIB’s price could drop to $0.000010.