After enduring a months-long downward trend, Shiba Inu (SHIB) could be poised for a major comeback, with analysts forecasting a 14.92% price surge in the coming weeks. The popular meme coin, which saw its price soar to $0.000045 in March, has since plunged, reaching a low of $0.00001075 in early August. However, with key indicators signaling a potential turnaround, SHIB may be ready to bounce back and reclaim its upward momentum.
Shiba Inu Eyes 14.92% Rally
At the time of writing, Shiba Inu has managed to recover slightly, trading at $0.00001337. Despite this rebound, many investors remain concerned about its overall downtrend. However, recent technical analysis suggests that the worst may be behind SHIB. Two critical indicators have turned bullish, providing a glimmer of hope for a potential price rally.
One of the key signals is the Moving Average Convergence Divergence (MACD) indicator, which measures momentum and trend strength. SHIB’s MACD has flipped to positive, as the histogram bar above the neutral line turned green, suggesting a shift in market sentiment. Additionally, the Relative Strength Index (RSI), which measures the speed and change of price movements, is hovering near the neutral 50 level. Shiba Inu’s current RSI of 45 indicates that a double-digit gain could be imminent.
If these trends hold, Shiba Inu could see its price climb to $0.00001525, a 14.92% increase from its current value. This would bring SHIB closer to its previous high of $0.00001610, recorded last month.
Shibarium Development Could Boost SHIB
Another factor fueling optimism is the increasing developer activity on Shiba Inu’s Layer-2 network, Shibarium. The launch of the Shibarium development portal (ShibDev) has attracted a growing number of developers, which could have a positive impact on SHIB’s price. On September 5, developers deployed 34 smart contracts on Shibarium, a figure just shy of the three-month high of 36 contracts recorded in July. This uptick in development suggests that more decentralized applications (dApps) could soon be built on the network, potentially driving up demand for SHIB.
Increased developer activity could also lead to a rise in token burns, further reducing SHIB’s supply and supporting its price recovery. As more dApps and decentralized finance (DeFi) projects flock to Shibarium, SHIB burns could intensify, helping to drive long-term growth for the meme coin.
Shiba Inu Undervalued, Says Santiment
According to data from Santiment, Shiba Inu remains significantly undervalued. The Market Value to Realized Value (MVRV) ratio, a key metric that measures whether a token is overvalued or undervalued, shows SHIB’s 30-day MVRV at -2.067%. A negative MVRV ratio indicates that the asset is trading below its fair market value, suggesting that SHIB could be primed for a price rebound.
Also Read: Shiba Inu Wallets Drop 31.7% As Small Holders Flee Amid Market Uncertainty
Additionally, SHIB’s Network Realized Profit/Loss metric highlights that traders have incurred losses over the past 30 days. These losses have led to the liquidation of several long positions, creating a potential opportunity for new investors to enter the market at discounted prices.
Shiba Inu’s multi-month downtrend may soon be a thing of the past as bullish indicators emerge, and developer activity ramps up on Shibarium. With a potential 14.92% rally on the horizon and signs that SHIB is currently undervalued, the dog-themed token could be poised for a significant recovery. Investors will be closely watching key technical indicators and developments on Shibarium to gauge the strength of SHIB’s potential comeback.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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