Key Insights:
- Shiba Inu MVRV ratio hits Q3 2024 levels, signaling a potential bottom and possible 128% price surge to $0.000032.
- Shiba Inu on-chain loss volumes plunge from 5 trillion to 579 billion, indicating reduced selling pressure.
- SHIB trades at $0.000014 with an 81% volume surge, suggesting growing investor interest despite weekly dip.
In the past day, Shiba Inu (SHIB) price saw a sharp dip. This happened as the crypto market fell, resulting in $600 million in liquidations. SHIB is currently priced at $0.000014, having decreased by 6% in the past week. However, the price dip, certain on-chain indicators suggest a possible reversal. They include drops in the MVRV ratio and daily transaction volumes in losses.
Shiba Inu Price Prediction: MVRV Ratio Suggests Potential SHIB Bottom
On Shiba Inu price prediction, the MVRV ratio is currently where it was during Q3 2024 before it surged. During that period, SHIB price rose by 128%, suggesting that a similar rise might happen if the same occurs. If there is increasing bullish energy in the market, SHIB could rise to $0.000032 based on the MVRV ratio.
Historically, the MVRV ratio has been a key indicator for identifying market bottoms. It reflects the average profit or loss of SHIB holders relative to the current price. In such cases, the asset being sold may seem undervalued, indicating that its price could rise back up.
At their present ratio level, experts suggest that better market sentiment could cause another rally to $0.000032.
Transaction Volumes in Loss Drop as Sellers Exit
Besides the MVRV ratio, on-chain data also showed a decrease in daily transactions involving loss of SHIB. The data indicated that SHIB volumes have declined greatly, from nearly 5 trillion to only 579 billion.
Consequently, this could be a sign that capitulation is lessening. This trend indicated that fewer traders were willing to sell at a loss. It reduced the downward pressure on the token and supported the potential for a price recovery.
A fast decline in selling activity is an important sign in determining market sentiment. It can signal that a long period of selling is ending. A decline in the number of traders selling at a lower price usually means holders are convinced in the long term.
As a result, a price reversal might be maintained for a prolonged period. The improved sentiment and the current MVRV ratio make it more likely that SHIB price may rebound.
Technical Indicators Point to Potential Reversal
Further on Shiba Inu price prediction, technical indicators suggested that the meme coin might recover. Despite the dip in SHIB price, the CMF index has indicated rising confidence in the token’s price. This divergence suggested that smart money may be accumulating SHIB at lower prices, a pattern often observed before price rallies.
Additionally, SHIB Average Directional Index (ADX) has been decreasing together with the price, suggesting the current sell-off is losing strength. Such a trend generally signals that buyers may soon come in, as sellers lose control of the market.
Key Resistance and Support Levels to Watch
For a long-term recovery, SHIB should hold the critical support at $0.0000139. Maintaining this level might lead to the price breaching the resistance at $0.000016 before going on to challenge $0.000022. These levels are crucial as the broader market seeks stability amid ongoing volatility.
In the coming weeks, Shiba price prediction may likely depend on broader market movements and the strength of long-term holder confidence. With on-chain data showing early signs of recovery and technical indicators aligning for a potential bounce, SHIB is poised for a near-term rebound.