Shiba Inu Price Flashes Bottom Signs Amid Kusama’s New Voting Proposal

Shiba Inu price is showing signs of reaching a potential bottom after a prolonged downtrend. As the token hovers close to crucial support levels, the Shiba Inu community finds itself at a pivotal moment, driven by a new voting proposal initiated by the project’s lead developer, Shytoshi Kusama. This proposal could shape the future of SHIB’s ecosystem as the community weighs in on how to best utilize a significant donation to the SHIB DAO.

Further, a technical analysis of the SHIBA may have a slight drawdown to cover before a potential price surge. SHIB price is down 2.1% daily and is trading at $0.00001334.

On-Chain Metrics at Shiba Inu Price Bottom

Over the weekend, Shiba Inu’s lead developer, Shytoshi Kusama, initiated a community vote to decide the use of 37.5 ETH contributed by the fast-food chain Welly to the SHIB DAO. The proposal offered four options, one of which was to burn SHIB tokens. However, key community figures like Jolt and Lola opposed the burn, citing its limited impact on SHIB’s value.

They advocated for using the funds to boost Shibarium’s adoption and develop SHIB-based projects. Early voting results indicate strong community support for these alternative strategies, with 84.55% voting against the burn option.

Data from Santiment shows that social dominance surged to monthly highs, which indicates that the asset is receiving a lot of attention and discussion on social media, which can sometimes precede significant market moves.

However, Shiba Inu price has been steadily dropping since August 24, suggesting that this attention may translate into something other than buying pressure. 

The surge in social dominance was accompanied by more positive sentiment than negative, suggesting that the community believes in the asset’s long-term potential despite short-term challenges. If the broader market conditions improve, the positive sentiment could drive a price recovery.

The Shiba Inu 30-day realized cap fell to a 10-month low, indicating that the recent transactions are happening at significantly lower prices than in the past ten months. This could mean investors’ confidence in the asset’s short-term prospect, potentially signaling further market correction.

The 30-day and 365-day Market Value to Realized Value (MVRV) are currently dropping along with the Shiba Inu price, indicating the average Shiba Inu holder is seeing reduced profitability. Additionally, it can point to negative market sentiment, as investors might lose confidence in the asset’s ability to recover in the short term.

However, a low MVRV ratio can be seen as an accumulation opportunity, as it indicates that the asset is undervalued compared to its historical realized value.

The recent price drop has pushed the total supply of SHIB in profit to a critical zone. Santiment data shows that only 30.71% of Shiba Inu holders are in profit. The asset’s profitability is at a historical support level and at the risk of dropping if the price continues dropping.

SHIB Price Eyes 3% Drawdown Before 16% Surge

Shiba Inu price is currently consolidating between demand and supply zones. Market makers hunted liquidity in the recent swing high, resulting in a drastic downturn.

SHIB Inu price prediction shows the asset may find support around $0.00001260 before rebounding to $0.00001460. This constitutes a 3% drawdown followed by a 16% price spike.

However, market makers may hunt for the sell-side liquidity, resulting in a quick run below the support level. Watch out for long bottom wicks and a surge in volume to confirm a rebound.