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Simon Chandler
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Simon Chandler
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The price of Shiba Inu has plummeted by 10% today, dropping to $0.00002683 as the cryptocurrency market suffers a 4% decline in the past 24 hours.
SHIB is also down by 8.5% in the past week, although the meme token remains up by 19% in a month and by 160% in a year.
Its fall today puts it in an oversold position, with its seven-day MVRV (market value to realized value) ratio dropping to -9% today, as more SHIB holders enter the red.
Yet such falls signal that the coin is ready to rebound soon, with analysts offering some very bullish SHIB price predictions.
Shiba Inu’s Rally Hits a Snag – Could More Corrections Be Around the Corner?
After falling overnight, SHIB is now hitting a bottom, with its indicators suggesting that it could rebound very soon.
Its relative strength index (purple) has begun climbing again after falling below 30 a few hours ago, with SHIB’s price rising by 2% in the past hour.
Meanwhile, the coin’s 30-period average (orange) has dropped below the 200-period average (blue), which in the immediate term indicates a selloff.
Yet this selloff has now happened, so SHIB is now in a position where it can recover strongly.
This is also supported by the aforementioned MVRV ratio, which has fallen beyond -9% in the past 24 hours.
Not only does this indicate that SHIB holders are, on average, sitting on a 9% loss in the past week, but it also reinforces the view that the coin is currently in an undervalued position.
In other words, it should bounce back strongly very soon, with similar dips in the MVRV ratio leading to their own recoveries.
On Course for Future Growth
Analysts seem to think that SHIB is due for a big surge, with some suggesting in recent days that the coin is “on the verge of a massive break-out“.
It has recently suffered in the shadow of Dogecoin, which has attracted most of the attention following Donald Trump’s election victory, and Elon Musk’s ascension to co-head of the so-called Department of Government Efficiency.
Yet Shiba Inu arguably has more going for it on a fundamental level, for various reasons.
It has seen its burn rate increase significantly in recent weeks, for example, on the back of rising Shibarium usage.
In fact, this rate has shot up by over 12,000% in the past 24 hours, resulting in the burning of 52 million SHIB.
And speaking of Shibarium, its growth points to the other major reason to be bullish about Shiba Inu, which is that it has a richer ecosystem than many of its peers.
There’s its layer-two network Shibarium, its DEX ShibaSwap, while it has also seen the launch of several related video games in recent months.
Based on these factors, and given the overall direction of the wider market, the Shiba Inu price is likely to continue rising in the coming weeks and months.
It could hit $0.000030 again by Christmas, before climbing to $0.000050 by Q2 2025.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
