For the past two weeks, Shiba Inu (SHIB) has faced a period of consolidation, battling to rebound from recent setbacks. Despite this stagnation, there are strong signs that the meme coin might soon redirect upward. Key indicators are hinting at a turning point, sparking optimism among investors.
Currently, the Market Value to Realized Value (MVRV) ratio of Shiba Inu has fallen into a zone of opportunity, specifically between -9% and -21%.
Historically, this range has marked potential price reversals, often encouraging investors to retain rather than liquidate their positions. This trend reduces selling pressure and fosters increased accumulation at favorable price levels.
Each time SHIB's MVRV ratio has entered this zone, the token has a history of rebounding. The present market conditions reflect this pattern, prompting investors to anticipate another recovery. Such a trend underscores the mounting confidence in Shiba Inu's ability to emerge from its stagnation phase.
On the technical side, Shiba Inu's Moving Average Convergence Divergence (MACD) suggests a decline in bearish momentum. The MACD is approaching a bullish crossover, indicating a likely transition from negative to positive momentum. Historically, this technical indicator aligns with bullish price movements, pointing to a potential recovery for the cryptocurrency.
As bearish pressure diminishes, SHIB is likely to garner fresh interest from buyers. A confirmed bullish crossover in the MACD would reinforce the case for a prolonged rally. This change in momentum could help Shiba Inu recover lost ground and aim for higher resistance thresholds.
In recent weeks, SHIB's price has fluctuated between $0.00002341 and $0.00002093, currently sitting at $0.00002118. Considering the improving indicators, a fall below this range seems unlikely. Enhanced accumulation and decreased selling pressure are anticipated to bolster these levels.
For SHIB to embark on a recovery trajectory, it must turn the $0.00002341 mark into support and break through the $0.00002606 resistance level. Historically, the token has stalled below this threshold, marking it as a vital target. Surpassing this level would pave the way for a new upward rally.
However, if bearish forces linger, SHIB's price might descend to $0.00001961, undermining the bullish outlook and causing investor caution. Upholding key support levels is crucial for maintaining market optimism.
This potential for recovery and upward trajectory in Shiba Inu (SHIB) serves as a beacon of hope for investors eyeing a positive turn.