Shiba Inu (SHIB) is down by 5% in the last 24 hours amid a crash across the broader crypto market that has caused more than $600M in liquidations. Despite the dip, two key metrics – the MVRV ratio and daily on-chain transaction volumes in loss – suggest that a reversal is underway.
SHIB trades at $0.000014 today, with a seven-day dip of 18%. Meanwhile, trading volumes had increased by 81% in 24 hours according to data from CoinMarketCap.
Has Shiba Inu Price Formed a Local Bottom?
After losing over 16% in just one week, on-chain data indicates that a SHIB price bottom has been formed. The MVRV ratio is currently at the same level that it was in Q3 2024, before Shiba Inu made an explosive upward rally.
If history rhymes, which is usually the case with most meme coins and the crypto market, the price of SHIB may overcome bearish trends and resume the uptrend that it started last week.
Additionally, shortly after the MVRV ratio bottomed last year, SHIB soared by 128%. If the top meme coin replicates these gains, it will reach the $0.000032 price within weeks.
Meanwhile, Shiba Inu’s daily on-chain transaction volumes in loss have plummeted to 579 billion after reaching nearly 5 trillion earlier this month.
This decline indicates that capitulation may be over, as fewer traders are willing to sell SHIB at a loss. This drop will reduce the downward pressure on Shiba Inu price, which further indicates that the meme coin is in a bottoming phase.
As the MVRV and easing on-chain losses support a bullish Shiba Inu price forecast that the meme coin has indeed bottomed, long-term holders may start accumulating. This will form the basin for which SHIB price rebounds.
Technical Analysis as Bullish Signals Emerge
The daily Shiba Inu price chart shows multiple bullish signals, suggesting that the downward momentum may be false and may quickly be followed by an upward reversal. The CMF indicator on this chart is rising while the price is dropping, which may show that smart money is accumulating or buying the dip.
The ADX line also paints a similar picture and is leaning towards a bullish reversal occurring soon. This line is dropping alongside the price of Shiba Inu, an indication that the downward momentum is not strong enough, and sellers may soon reach exhaustion.
Considering this technical outlook, it is likely that SHIB defends support at the $0.0000139 price and rebounds to test the resistance at $0.000016. If this happens, traders should watch out for a bullish leg to $0.000022.
The on-chain data, including the MVRV and transaction profitability, coupled with this technical outlook, supports a bullish outlook for Shiba Inu price. Therefore, if the broader market cap recovers from the ongoing correction, SHIB can easily lead the next bull run.
Frequently Asked Questions (FAQs)
The MVRV ratio suggests that SHIB price may have hit a local bottom. Moreover, on-chain losses have subsided, which may trigger long-term holder accumulation.
The MVRV ratio and the decline in on-chain losses show that Shiba Inu price is about to rebound. These metrics may precede buying activity and support a strong bounce.
The most critical resistance level for SHIB price is $0.000016. If it can overcome this level, it is poised for a strong upward trend.
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muthoni
Muthoni Mary is a seasoned crypto market analyst and writer with over three years of experience dissecting blockchain trends, price movements, and market dynamics. With a sharp eye for technical analysis and an in-depth understanding of on-chain metrics, she delivers insightful, data-driven content that helps investors navigate the fast-paced world of digital assets.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
