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26 September, 2024

Shiba Inu (SHIB) Price Soars 12%: Is a Correction on the Horizon?

26 September, 2024

The Shiba Inu (SHIB) token has experienced a significant price surge, jumping by 12% in recent trading. While this upward momentum is encouraging for SHIB holders, several indicators suggest a potential correction may be looming.

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One key concern is the overbought MVRV ratio. This metric measures the average profit or loss realized by investors who recently sold their SHIB holdings. A high MVRV ratio indicates that investors are currently profiting significantly from selling their SHIB, suggesting a potential for price reversal.

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Furthermore, cautious whale activity adds to the possibility of a pullback. Whales, or large investors who hold significant amounts of cryptocurrency, have been relatively inactive in recent days. This lack of buying pressure from whales could contribute to a decline in SHIB’s price.

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Despite these bearish signals, it’s important to note that SHIB’s price surge is largely fueled by speculation and sentiment. If investor confidence remains strong, the token could continue its upward trajectory. However, if the overbought MVRV ratio and lack of whale activity persist, a correction could be on the horizon.