Shiba Inu price could be on the path to recovery after $2.5 billion SHIB slip into loss
|- Shiba Inu price fell by 11% over the last 72 hours pulling the meme coin below $0.00001000.
- About 280 trillion SHIB acquired in the range between $0.00000999 and $0.00001400 has receded to losses.
- MVRV ratio shows that Shiba Inu investors are currently underwater, less likely to sell and instead accumulate, driving the price higher.
Shiba Inu price has inched lower towards a key support line that truly acts as the last line of defense before SHIB enters uncharted territory. However, there is a chance that investors might deflect this possibility as their increasing unrealized losses might lead them to refrain from selling, providing the foundation for a recovery to take shape.
Shiba Inu price dips lower
Shiba Inu price at the time of writing can be seen trading at $0.00000889, losing the psychological support level of $0.00001000 in the past three days. Falling by 11% in this duration, SHIB added to the ongoing decline that began in early February after the meme coin hit its year-to-date highs.
SHIB/USD 1-day chart
The decline in price resulted in a significant chunk of Shiba Inu supply falling back into the red after having been in profit nearly four months ago. This includes the coins acquired by more than 330,000 addresses between $0.00000999 and $0.00001400. In all, about 280 trillion SHIB worth a little under $2.5 billion have lost their profitability since February.
Shiba Inu GIOM
According to the Market Value to Realized Value (MVRV) ratio, however, these underwater investors might be willing to act bullishly again.
This indicator basically measures the share of token holders in profit or loss. In the case of SHIB, a dip below the -10% mark suggests that a large cohort of investors are heavily underwater and that rather than realize their losses, they might refrain from selling and hold on in the hope price will rally back up.
This zone is also known as the opportunity zone. Thus, HODLing and accumulation could become the major focus of SHIB holders, which in return acts as a trigger for recovery.
Shiba Inu MVRV ratio
This is linked to Loss Aversion Bias, a trading psychology term that describes a cognitive bias that leads traders to place more weight on avoiding losses rather than seeking gains even when those losses accumulate. Loss aversion is often caused by emotions such as fear, anxiety and regret.
Furthermore, now more than ever, investors have an incentive to HODL instead of selling since the meme coin is close to a key support level. Marked at $0.00000767, this point is the lowest Shiba Inu price has ever reached. Falling through it could trigger unprecedented bearishness for the cryptocurrency.
Shiba Inu all-time low
Thus to subvert this, SHIB would need to at least breach above the 200-day Exponential Moving Average (EMA) at $0.00001134, which would ascertain chances of recovery for the meme coin.
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