The Shiba Inu (SHIB) 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 could soon hit a roadblock on its journey to $0.00003.
Shiba Inu NVT Ratio Is On The Rise
Data from the on-chain market intelligence platform 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 as it presents a bearish outlook for Shiba Inu and hints at a potential price correction for the meme coin.
The NVT ratio isn’t the only metric that Shiba Inu investors should be concerned about. Data from the market intelligence platform IntoTheBlock shows that Shiba Inu’s correlation with Bitcoin has drastically reduced since the flagship crypto began to enjoy an impressive rebound.
Before now, Shiba Inu’s correlation with Bitcoin was over 0.9, which indicated a strong positive price correlation. However, that figure has now dropped to 0.52, indicating a lesser correlation between both prices. Additionally, only about 51% of Shiba Inu holders are currently in the money, which means the meme coin is at risk of significant sell-offs as the remaining 49% that aren’t in the money look to break even once the meme coin records higher prices.
However, some other on-chain metrics paint a bullish picture for Shiba Inu, which could help avert such price correction and help sustain the meme coin’s current uptrend. One is the notable increase in Shiba Inu’s large transactions, suggesting that crypto whales might be accumulating the meme coin in anticipation of higher prices.
Data from IntoTheBlock shows an increase of over 2% in these large transactions over the last seven days. Further data shows that 365.69 billion SHIB have been traded in the last 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 enough. He stated that SHIB has confirmed a macro Hidden Bullish Divergence with its Relative Strength Index (RSI), which indicates that a full recovery and continuation of its bull rally may be on the horizon.
He added that this confirmation sets Shiba Inu for a price recovery of over 162%, sending its price to the $0.0000456 range. Interestingly, Marks also claimed that Shiba Inu might rally further as it could break out of a larger resisting structure, putting a price target of $0.000081 in sight.
At the time of writing, Shiba Inu is trading at around $0.00001718, up over 2% in the last 24 hours, according to data from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com
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