Shiba Inu Poised for a Rebound: 2-Digit Surge on the Horizon
Shiba Inu has been on a rough ride for months, but the storm may be nearing its end. After its price peaked at $0.000045 in March, the meme coin took a nosedive, sinking to a low of $0.00001075 by August 5. Investors, shaken by the sharp drop, saw their hopes dwindle. Yet, recent developments signal that the downward spiral could soon reverse, and Shiba Inu might be on the verge of significant gains.
At press time, Shiba Inu sits at $0.00001337, showing signs of recovery. Technical indicators suggest that the meme coin could stage a rally, with the potential to surge by 14.92%. Should this happen, SHIBs price would hit $0.00001525, a level not far from its recent high of $0.00001610.
Two major indicators are hinting at brighter days for Shiba Inu. The first is the Moving Average Convergence Divergence (MACD), which has flashed a bullish signal. The histogram, a key part of this metric, turned greenindicating that the asset is gaining positive momentum. This is a welcome shift after months of lackluster performance.
The second indicator is Shiba Inus Relative Strength Index (RSI), which measures the coins momentum. Currently, SHIBs RSI sits at 45, just shy of the neutral 50 mark. An RSI level below 30 usually signals oversold conditions, while a level above 70 points to overbought territory. With SHIBs RSI now edging closer to 50, it suggests that the asset is poised for a breakout, possibly reaching double-digit gains in the near future.
Beyond the technical indicators, there are fundamental reasons to be bullish on Shiba Inu. Shibarium, the Layer 2 network developed for Shiba Inu, is attracting a growing number of developers. On September 5 alone, 34 new contracts were deployed on the platform, just short of the three-month high of 36 contracts recorded on July 25. As more decentralized applications (dApps) are built on Shibarium, the demand for SHIB tokens could rise. This increase in activity could also boost the SHIB burn rate, reducing the tokens supply and potentially pushing prices higher.
Shiba Inu Still Undervalued
Despite recent struggles, Shiba Inu appears undervalued. According to Santiment data, the coins Market Value to Realized Value (MVRV) ratio over the last 30 days stands at -2.067%. An MVRV below zero suggests that the asset is trading below its fair value, which may indicate a buying opportunity.
Additionally, SHIBs Network Realized Profit/Loss metric reflects traders recent losses. The negative spikes on the chart suggest that several long positions have been liquidated as the price fell, but this could also set the stage for a recovery as weak hands exit the market.
The worst may soon be over for Shiba Inu. With key indicators turning bullish, the asset looks poised for a 14.92% rally. Combined with the rising activity on Shibarium and its undervalued status, SHIB could be ready to make a strong comeback. Investors, whove been burned by the recent downturn, may soon have reason to celebrate again.
Read more: https://www.tronweekly.com/shiba-inu-poised-for-a-rebound-2-digit-surge/
Text source: TronWeekly
