• Shiba Inu’s MVRV ratio has dropped below 1, which could show that the memecoin is in an accumulation phase. 
• SHIB whales have also purchased 1 trillion SHIB tokens within 24 hours, which could fuel the rally. 

Shiba Inu [SHIB] has staged a strong recovery after falling to a six-month low earlier this week. At press time, SHIB was trading at $0.0000163 after an 8% gain in 24 hours. 

While SHIB’s recent gains likely came from traders buying the dip, trading volumes had dropped by 32% per CoinMarketCap, showing that demand remains weak.

However, on-chain metrics suggest that buying pressure could rise. 

MVRV ratio flashes a buy signal 

Shiba Inu’s Market Value to Realized Value (MVRV) ratio recently fell to a multi-month low of 0.78, and while it has since recovered to 0.84, it still signals a buying opportunity. 

An MVRV ratio below 1 indicates most SHIB holders are in losses. However, this drop has always marked an accumulation phase.

Historically, a recovery in the MVRV ratio precedes a rally, potentially resulting in significant gains for the memecoin. Large addresses are already stepping in and accumulating SHIB.

Large holder netflows increased from -3.29 billion to 1.04 trillion. Whales accumulated more than 1 trillion SHIB tokens within 24 hours.

This surge marks the highest single-day accumulation by whales in nearly one month. And the whales actively bought the recent dip.

SHIB’s price analysis 

A look at Shiba Inu’s one-day chart shows that bullish trends are gaining strength. The MACD line was oscillating above the signal line while the histogram bar

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Author: Muthoni Mary