Shiba Inu (SHIB) has been navigating turbulent waters for months. After reaching a high of $0.000045 in March, the meme coin plunged to a low of $0.00001075 by early August, leaving investors disheartened. However, recent signals suggest that the worst may be behind us, and Shiba Inu could be on the cusp of a substantial rebound.
As of now, Shiba Inu’s price stands at $0.00001337, showing promising signs of recovery. Technical analysis reveals a potential rally in the works, with predictions indicating a possible surge of up to 14.92%. If this momentum holds, SHIB’s price could climb to $0.00001525, approaching its recent peak of $0.00001610.
Technical Indicators Point To A Rebound
Two critical technical indicators are fueling optimism about Shiba Inu’s prospects. First, the Moving Average Convergence Divergence (MACD) has flashed a bullish signal. The MACD histogram has turned green, suggesting a positive shift in momentum after a prolonged period of underperformance.
Second, the Relative Strength Index (RSI) for Shiba Inu is currently at 45, nearing the neutral 50 mark. An RSI below 30 indicates oversold conditions, while a level above 70 signals overbought status. With SHIB’s RSI approaching 50, it hints at a potential breakout and the possibility of double-digit gains in the near future.
Fundamental Factors Bolstering SHIB
Beyond the technical signals, there are fundamental reasons to be optimistic about Shiba Inu. The launch of Shibarium, its Layer 2 network, is drawing significant developer interest. On September 5 alone, 34 new contracts were deployed on the platform, approaching the three-month high of 36 contracts seen on July 25. This growing activity on Shibarium could increase demand for SHIB tokens and potentially boost the SHIB burn rate, reducing the token’s supply and supporting price appreciation.
Is Shiba Inu Undervalued?
Despite its recent struggles, Shiba Inu appears to be undervalued. Data from Santiment reveals an MVRV ratio of -2.067% over the past 30 days. A negative MVRV suggests that SHIB is trading below its fair value, potentially presenting a buying opportunity.
Also Read: Shiba Inu (SHIB) Poised For 7,379% Surge – Analyst Predicts $0.001 Breakout
Additionally, SHIB’s Network Realized Profit/Loss metric shows negative spikes, indicating recent losses among traders. While this reflects the pain of falling prices, it could also pave the way for a recovery as weaker hands exit the market.
Shiba Inu’s current position suggests that the coin might be on the brink of a significant turnaround. With bullish technical indicators, rising activity on Shibarium, and an undervalued status, SHIB seems poised for a potential 14.92% rally. Investors who have weathered the storm may soon find themselves celebrating a resurgence in SHIB’s fortunes. As the meme coin battles back, all eyes will be on its next move in the crypto market.
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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