The price of Shiba Inu (SHIB), a prominent meme coin, has seen a 19% drop over the past month, presenting a potential buying opportunity as whales begin to increase their accumulation. While on-chain metrics suggest that SHIB is currently undervalued, technical indicators warn of possible further declines.

Whales Take Advantage of SHIB Price Dip

The recent price drop of Shiba Inu (SHIB) has caught the attention of large-scale investors, commonly known as whales, who have started accumulating the coin. An analysis of SHIB’s market value to realized value (MVRV) ratios reveals that the meme coin is currently undervalued, offering a tempting entry point for investors looking to “buy the dip.” At present, SHIB’s 30-day and 90-day MVRV ratios are recorded at -1.7 and -24.07, respectively, indicating that its current trading price is below the average cost of all tokens in circulation.

“This undervaluation is an attractive signal for investors,” data from Santiment suggests, as whales have responded by increasing their trading activity. Supporting this trend, data from IntoTheBlock reveals a 128% surge in the number of SHIB transactions valued between $100,000 and $1,000,000 in the past month. Large transactions often hint at bullish sentiment, as retail traders tend to view whale activity as a positive signal, potentially leading to a ripple effect in increased buying and subsequent price growth.

Caution Advised Despite Whale Interest

Despite the uptick in whale activity, technical indicators suggest caution. The Chaikin Money Flow (CMF), which measures money flow volume over time, is currently hovering around the center line, with a potential dip below it. A CMF below zero typically signals market weakness, reflecting increased liquidity exiting the asset and suggesting a possible price drop.

Additionally, Shiba Inu’s Relative Strength Index (RSI) stands at 43.7, indicating that selling pressure outweighs buying activity. If this bearish trend continues, SHIB’s price could drop further, potentially reaching $0.000010. Conversely, if market conditions shift in favor of the bulls, increased demand could push SHIB’s price up to $0.000018.

As the market navigates this volatility, investors are urged to proceed with caution, keeping an eye on both whale activity and broader technical signals.

Source: Shiba Inu (SHIB) Sees Surge in Whale Activity as Coin Flashes Buy Signal