Shiba Inu's Price Plunge: Buy Opportunity or Bearish Trap?

Generated by AI AgentCoin World
Tuesday, Feb 4, 2025 12:39 pm ET1min read
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Shiba Inu (SHIB) Eyes an Upswing, But Risk of Decline Persists

Leading meme coin Shiba Inu (SHIB) has seen a significant drop in value, falling by 20% over the past week. Due to this double-digit price fall, a key on-chain metric suggests that SHIB has become undervalued, indicating it might be a good time to buy.

However, while the MVRV ratio suggests a favorable buying opportunity, SHIB’s downtrend may not be over. The meme coin’s negative funding rate of -0.03% at press time reflects the bearish sentiment plaguing SHIB, suggesting that the likelihood of a price rebound in the near term may be low.

On the daily chart, SHIB’s Chaikin Money Flow (CMF) supports the bearish outlook above. As of this writing, the CMF indicator is below zero at -0.03, indicating a strong selling activity among traders. If SHIB’s demand remains low, it will extend its decline to $0.000014.

Conversely, if coin distribution stalls, it could drive SHIB’s value up to $0.000016.

Shiba Inu announces major web3 partnership with UAE government

The United Arab Emirates (UAE) government and cryptocurrency project Shiba Inu have partnered to promote Web3 innovation and growth in the country. In an announcement shared with crypto news, Shiba Inu (SHIB) stated that the collaboration involves the UAE’s Ministry of Energy and Infrastructure. It marks the first major partnership between a UAE government entity and a crypto project.

As part of this collaboration, the MoEI will leverage Shiba Inu’s platform to integrate Web3 solutions into key sectors such as energy and infrastructure. The Shiba Inu team emphasized that this collaboration is not only a significant milestone for the UAE but also a major step forward for SHIB and the broader crypto industry.

Unlike other blockchain partnerships the UAE has struck with crypto projects, this one with Shiba Inu stands out for its scope. For instance, Cardano (ADA) previously signed a deal with the Dubai Police, but Shiba Inu’s involvement is expected to span all of the Emirates. The UAE’s