Shiba Inu (SHIB) may soon see its prolonged downtrend come to an end, as the meme coin shows signs of a potential rally, with double-digit gains on the horizon.
After surging to around $0.000045 in March, Shiba Inu has experienced a significant drop, bottoming out at $0.00001075 on August 5. However, recent developments suggest a turnaround could be imminent.
Shiba Inu Poised for a 14.92% Gain
Shiba Inu’s price has recovered to $0.00001337 at the time of writing, but investors remain cautious after its multi-month decline. Despite this, two key technical indicators have turned bullish, signaling potential gains for the token.
The Moving Average Convergence Divergence (MACD), which tracks momentum, has flipped positive, with the histogram bar turning green above the neutral line. Additionally, the Relative Strength Index (RSI) is nearing the neutral 50 level, currently sitting at 45, indicating that Shiba Inu may soon see an upward move.
With these bullish signals, Shiba Inu could rally to $0.00001525, representing a 14.92% increase from its current price. This would bring the token closer to last month’s high of $0.00001610.
Several other factors could also support this potential rally, including increased developer activity within Shiba Inu’s Layer 2 network, Shibarium.
Shibarium Development Spurs Optimism
The recent launch of Shibarium’s development portal, ShibDev, has attracted a growing number of developers to the network. This increase in activity is evident in the number of deployed contracts, with 34 contracts deployed on September 5, just shy of the 3-month high of 36 contracts set on July 25.
As more developers join Shibarium, the network is expected to see a rise in decentralized applications (dApps) and SHIB token burns, both of which could drive further price increases.
Shiba Inu Remains Undervalued
Despite recent struggles, Shiba Inu remains undervalued, according to data from Santiment. The Market Value to Realized Value (MVRV) ratio over the past 30 days stands at -2.067%, suggesting that SHIB is trading below its true value.
Additionally, Shiba Inu’s Network Realized Profit/Loss metric indicates that traders have incurred losses over the past month, as reflected by negative spikes on the chart. These losses have resulted in the liquidation of several long positions, further contributing to SHIB's undervalued status.
Conclusion
With key indicators turning bullish and Shibarium development gaining momentum, Shiba Inu may be on the verge of a significant price rally. If these factors play out, SHIB could achieve a 14.92% gain, marking the end of its recent downtrend and setting the stage for further upward movement.
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