The symmetrical triangle suggests a breakout target of $0.00003255
Shiba Inu’s NVT ratio has decreased by 2.3%, which means that network activity has increased, showing that market activity is rising.
Shiba Inu (SHIB) has formed a symmetrical triangle on the 4-hour chart, a pattern that has attracted widespread attention from the market.
Symmetrical triangles usually represent the market's consolidation phase, showing uncertainty between buyers and sellers. However, with the advent of the crypto market bull run, analysts generally believe that SHIB may usher in an upward breakthrough. If the breakthrough is successful, SHIB's target may point to $0.00003255.
Symmetrical triangle signals potential rebound
Shiba Inu (SHIB) is currently consolidating within a symmetrical triangle pattern, which usually means that the market is in a period of indecision as buyers and sellers are still looking for signs of a breakout.
Judging from the chart, if an uptrend occurs, SHIB may break out of the current consolidation range with an expected target price of $0.00003255, which means that the price may rise by about 32% from the current level.
Formed by converging support and resistance lines, a symmetrical triangle is a common continuation or breakout pattern in technical analysis.
If SHIB succeeds in breaking through the resistance level, it could trigger a wave of bullish momentum; however, if it breaks below the support level, it could trigger further declines.
The 4-hour chart shows that the Shiba Inu is currently in a narrow consolidation state, with the price hovering around $0.00002478, reflecting that market volatility has weakened after the previous sharp rise.
The Alligator indicator shows that its three moving averages are converging, indicating that the market lacks clear directional momentum. In addition, the True Strength Index (RSI) shows current bearish values of -3.5790 and -7.9681, indicating that sellers are in the driver's seat, but selling pressure is waning.
The Momentum Oscillator is also negative (-0.00000101), further showing the current lack of bullish momentum.
SHIB is at a critical level between highs and lows
In the last 24 hours, SHIB’s MVRV ratio has dropped by 4.02%, which suggests that there may be profit-taking in the market or that the overall market optimism has weakened.
On March 6, 2024, the MVRV ratio was well below its 52-week high of 2.02, which means that the market is less speculative and investor sentiment is more cautious compared to the market's peak.
Looking back at history, the MVRV ratio reached an all-time high of 5.15 in October 2021, indicating that the market was overvalued, and then ushered in a correction. On the contrary, in June 2023, the MVRV reached a historical low of 0.3233, indicating that the market was undervalued, which also brought potential buying opportunities.
Currently, the MVRV ratio is hovering close to neutral, meaning the market is neither extremely undervalued nor overvalued. This suggests that SHIB may be in a relatively balanced price range, with investor sentiment neither too optimistic nor too pessimistic.
NVT ratio reflects increased network activity
Shiba Inu’s (SHIB) Network Value to Transaction Ratio (NVT), along with its price, can help us understand the valuation of an asset, especially relative to its transaction volume.
The NVT ratio has fallen 2.30% over the past 24 hours, indicating a slight increase in transaction activity relative to network value, reflecting rising market activity.
Nevertheless, the current NVT ratio is still far below the 52-week high of 856.77 on July 28, 2024, which means that the previous overvaluation state is gradually cooling down and the market is becoming more rational.
From the historical data, the highest value of NVT ratio is 856.77 and the lowest value is 0.9776. Generally speaking, a higher NVT value usually indicates that the market is overvalued, while a lower NVT value implies that it is undervalued.
Currently, the NVT ratio is in a near-neutral position, meaning that Shiba Inu’s trading volume is relatively balanced with its market value.