Shiba Inu (SHIB) price is mimicking historical patterns as two on-chain metrics signal the formation of a local bottom. The Market Value to Realized Value (MVRV) ratio is falling amid a spike in the age consumed. These metrics are flipping bullish after a steep decline in Shiba Inu price in the last seven days, as most meme coins struggle against a bearish market sentiment.
Shiba Inu Price Today Amid 8% Crash
Shiba Inu price has posted an 8% intraday loss today, May 31, as it fluctuates between a daily low of $0.0000123 and a daily high of $0.0000133. At press time, SHIB trades at $0.0000125 with $289 million in 24-hour trading volumes.
The declining Shiba Inu price coincides with the recent meme coin crash, as the entire meme token market cap shed $10 billion in value within a week. The sell-side pressure from long liquidations and traders looking to minimize losses is also causing bearish headwinds.
On-Chain Metrics Signal Bottom
Two on-chain metrics from analytics platform Santiment indicate that the SHIB price is mirroring previous patterns where the price bounces after seemingly forming a local bottom. These metrics include:
- A spike in Age Consumed
- Falling 30-day MVRV Ratio
Shiba Inu’s Age Consumed Metric Spikes
The Age Consumed metric from Santiment has surged to 580 trillion SHIB, marking its highest level since May 20 and representing an over 1,500% increase from the previous day. The spike happened as the Shiba Inu price fell to multi-week lows.
This metric usually shows the number of old or dormant coins that are on the move. When the metric spikes, long-term holders are likely dumping SHIB, and once the selloff ends, the price has room to recover.
Looking at the previous trends, any large spike in the Age Consumed metric tends to coincide with SHIB’s bottom. This happened on May 5, May 12, and May 30, where a short-term relief rally ensued shortly after this metric surged.
Meanwhile, this surge coincides with a recent Coingape analysis noting that Shiba Inu price may rebound to $0.00002 next week after forming a bullish “Rising Three Methods” pattern.
30-day MVRV Falls as Shiba Inu Price Drops
The 30-day MVRV ratio has also declined to its lowest point since March, as seen in the chart below. This ratio is currently at -10%, indicating that the current SHIB holders who purchased their tokens in the last 30 days are sitting on a 10% loss.
Just like the Age Consumed, the MVRV has previously signalled SHIB’s bottom. Each time the metric plunged to extremely negative levels, like is currently the case, SHIB price recorded an upswing.
Despite these bullish metrics, 2 trillion SHIB tokens flooded exchanges recently, posing concerns about a potential spike in selling activity that may derail recovery.
For a more detailed Shiba Inu price forecast between 2025 and 2050 – Read This.
Bottomline
Shiba Inu price has crashed with an 8% intraday loss as meme coins shed $10 billion in their value within one week. However, the Age Consumed metric has spiked alongside a fall in the MVRV ratio, a trend that previously coincided with a local bottom formation.
muthoni
Muthoni Mary is a seasoned crypto market analyst and writer with over three years of experience dissecting blockchain trends, price movements, and market dynamics. With a sharp eye for technical analysis and an in-depth understanding of on-chain metrics, she delivers insightful, data-driven content that helps investors navigate the fast-paced world of digital assets.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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