Shiba Inu (SHIB) has been consolidating for the past two weeks, struggling to break out and recover recent losses.
Despite the stagnation, changing momentum suggests that the meme coin may soon regain upward momentum. Various indicators point to an imminent shift, fueling investor optimism.
Shiba Inu Investors Have an Opportunity
The market value to actual value (MVRV) ratio of Shiba Inu has fallen into the opportunity zone, ranging between -9% and -21%. Historically, this area indicates potential price reversals as it often prompts investors to hold positions rather than sell. This behavior supports accumulation at lower price levels, alleviating selling pressure.
Whenever the MVRV ratio enters this zone, SHIB tends to show signs of a rebound. The current market conditions align with this pattern, encouraging investors to anticipate a recovery. This trend highlights the growing confidence that SHIB may soon break free from the consolidation phase.
Shiba Inu MVRV Ratio.
The Moving Average Convergence Divergence (MACD) indicator for SHIB shows that bearish momentum is weakening. The MACD is approaching a bullish crossover, indicating a potential shift from negative momentum to positive momentum. This technical signal has historically been consistent with upward price trends, suggesting that the cryptocurrency may recover.
As bearish pressure eases, SHIB is expected to re-attract buying interest. The confirmed bullish crossover on the MACD will strengthen the case for sustained upward movement. This momentum shift could allow Shiba Inu to recover lost ground and target higher resistance levels.
Shiba Inu MACD.
SHIB Price Prediction: Breaking through is the goal.
In the past two weeks, Shiba Inu's price has been trading between $0.00002341 and $0.00002093, currently hovering around $0.00002118. Given the improving indicators, the likelihood of breaking below this range is low. A reduction in accumulation and selling pressure is expected to support current levels.
For SHIB to rebound, it must turn $0.00002341 into a support level and break through the key resistance level of $0.00002606. Historically, this meme coin has consolidated below this level, making it a key target. Achieving this milestone will mark the beginning of a new round of rebound.
Shiba Inu Price Analysis.
However, if bearish momentum persists, SHIB's price could fall to $0.00001961. This scenario would invalidate the bullish outlook and cause caution among investors. Maintaining key support levels is crucial for sustaining market optimism.