Altcoin Analysis: Shiba Inu (SHIB) Shows Signs of Potential Recovery

Shiba Inu Holders Are Buying the Dip

According to data from IntoTheBlock, Shiba Inu's large holders' netflow has increased by 265% in the last seven days. This metric gauges whether investors are stacking a cryptocurrency in large volume or distributing it.

Assuming a drop in large holders' netflow would have implied a rise in distribution, potentially influencing a decline in the cryptocurrency's value. However, the recent significant netflow increase indicates that some top SHIB holders have purchased more tokens than they have sold. If sustained, this could drive up the cryptocurrency's price.

Shiba Inu's Price Action

Currently, SHIB's price is $0.000013, a 46.58% decrease over the last 90 days. Yet, the Sharpe ratio suggests a chance for better returns. The higher the ratio, the more favorable the investment.

According to Messari data, Shiba Inu's Sharpe ratio has notably increased from -4.52 on August 5 to 0.58, suggesting that buying SHIB at its current value could be worthwhile if broader market conditions stabilize.

SHIB Price Prediction: A Run to $0.000016

SHIB has been in a six-month downtrend, but signs of recovery may be on the horizon. If the positive trend continues, investors who have added the meme coin to their portfolios could witness a potential price surge.

The daily chart shows a solid support level at $0.000012, which could push the token toward an upward reversal. With strong buying pressure, SHIB’s price could surge to $0.000016. However, should large holders cease accumulation, the price may fall to $0.000010.