Despite Shiba Inu’s stock continuing to trade at its lowest levels in four months, multiple indicators suggest a potential imminent return due to its negative MVRV ratio.
According to the intelligence platform Santiment, Shiba Inu is currently one of the most undervalued crypto assets after facing significant negative sentiment. In a recent update, Santiment highlighted the MVRV Z-Score for several major market cap crypto assets, including Shiba Inu and Bitcoin. This metric assesses whether an asset is overvalued or undervalued by comparing its market value (MV) to its realized value (RV), the average price at which the token was last moved.
A high Z-Score indicates that the asset may be overvalued, while a low score suggests it could be undervalued. Toncoin (TON) registered the highest Z-Score at 6.14, supported by its impressive price performance, boasting a 30-day return of 22%, while other assets experienced losses.
Following TON were Bitcoin (BTC) and Ethereum (ETH), both with positive MVRV Z-Scores, categorizing them as overbought despite their respective losses in June.
Shiba Inu Undervalued:
Shiba Inu not only had a low score but also registered a negative Z-Score. Among the billion-dollar cryptocurrencies examined, Shiba Inu and Uniswap (UNI) had the lowest MVRV Z-Scores at -1.55 and -1.96, respectively.
These negative scores mean that SHIB and UNI are the most underbought among the large market cap assets, with traders generally experiencing losses. This comes at a time when Shiba Inu is struggling to organize a bullish rally. Specifically, SHIB’s price declined by more than 32% in June.
Historically, periods of undervaluation have been followed by significant price increases. In other words, Shiba Inu might be on the verge of a strong comeback soon.
Another Bullish Indicator:
Investors are consistently moving their Shiba Inu tokens from exchanges to private wallets for long-term holding. This trend was highlighted by Crypto Basic. Additionally, Shiba Inu’s price rise is supported by the current trend.
Read more Significant Increase in Burned Tokens for Shiba Inu Network Signals Potential Price Growth
Two weeks ago, Santiment noted that Shiba Inu’s reserves in the top ten exchanges had significantly decreased by 2.4% since late May. On a yearly scale, at the time of writing, SHIB is trading at $0.00001723, recording a slight gain of 1.05% in the past 24 hours.
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