Shiba Inu, the popular meme-inspired cryptocurrency, is on the radar for a potential price surge, as blockchain analytics firm Santiment reports that the token is significantly undervalued, highlighted by its MVRV Z-Score plummeting below the -1.5 threshold.
In the midst of a bearish phase in the cryptocurrency market, Shiba Inu has not been spared from the downturn. Yet, it has captured the spotlight after Santiment published findings on its market valuation.
**Shiba Inu’s Market Valuation Dips**
Santiment’s analysis points to a promising turnaround for Shiba Inu, citing its MVRV Z-Score, which has dipped to -1.55, signaling a substantial undervaluation of the asset.
**Understanding the MVRV Z-Score**
The MVRV Z-Score is a tool for gauging whether a cryptocurrency is overvalued or undervalued by comparing the market value to the realized value and normalizing the result using the standard deviation of market value. A score below zero, especially as low as -1.55, suggests that Shiba Inu’s market price is well below its actual worth, indicating a potential overselling and undervaluation.
An accompanying **chart** from Santiment displayed various leading cryptocurrencies ranked by their MVRV Z-Scores. Notably overvalued were Toncoin, with a score of 6.14, and mainstream cryptocurrencies like **Bitcoin** and **Ethereum**, with scores of 1.96 and 1.23, respectively.
**The Rebound Potential for Shiba Inu**
Conversely, Shiba Inu, alongside Uniswap, emerged as the most undervalued assets, with scores of -1.55 and -1.96, respectively. A similar drop in Shiba Inu’s MVRV Z-Score in February preceded a significant rally, propelling SHIB to $0.000045 by early March.
*Shiba Inu MVRV Z Score | Santiment*
Currently, SHIB is trading at $0.00001736, a slight 0.70% uptick. Despite this, it’s still 41% below its May 29 peak of $0.00002945. June saw a notable 32% decline, marking the largest monthly drop since the 41.82% fall in May 2022 following the Terra debacle.
Amidst these downturns, SHIB’s Stochastic indicator sits at 19, suggesting an oversold condition, as per CryptoQuant. This bolsters the case for a rebound. The Stochastic and the Relative Strength Index (RSI), which is currently at 32, are both used to assess if an asset is overbought or oversold.
*Shiba Inu Stochastic and RSI | CryptoQuant*
With the Stochastic indicator nearing 19, it echoes the MVRV Z-Score’s undervaluation signal, hinting at a potential recovery for Shiba Inu. Market analyst Kyle Doops also posits that SHIB could be primed for a climb to $0.00002, noting a decrease in sell pressure on trading platforms.
**Disclaimer:** This article is for informational purposes only and should not be taken as financial advice. The opinions expressed herein may be personal to the author and do not necessarily represent those of The Crypto Basic. Readers should conduct their own research before making investment decisions. The Crypto Basic assumes no liability for any financial losses incurred.
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