Shiba Inu (SHIB) Price Flips Key Moving Averages as Indicators Hint at Extended Gains

Key Takeaways

• SHIB’s price broke out of a falling trendline, turning former resistance into support and hinting at the end of its bearish phase.
• The SHIB 30-day MVRV ratio is 9.66%, below the historical danger zone, meaning the token may still have room to grow.
• Technical indicators flash bullish signals, paving the way for a possible breakout above $0.000015 and a run toward $0.000019.

Shiba Inu (SHIB) has extended its week-long uptrend, sprinting to $0.000014 and clocking a 17% gain over the past seven days.

At the beginning of the year, SHIB’s price traded higher. At $0.000025, both short- and long-term holders made huge unrealized profits.

But as if the air had been yanked from the room, the SHIB rally crumbled. Losses followed, dragging gains with them. However, the last few days have seen the market flip, with some lost fortunes returning.

But will SHIB’s price continue to trade higher? Let’s find out in this analysis.

SHIB Breaks Bearish Grip

During the period that SHIB plunged and profits dissolved into the red, the price dropped below two major Exponential Moving Averages (EMAs): the 20 EMA and the 50 EMA.

Typically, a drop below these EMAs indicates a bearish trend. However, things have changed following the recent jump, which saw SHIB’s price climb by 10% in the last 24 hours.

Based on the daily chart, SHIB’s price is now trading above the 20 EMA (blue) and 50 EMA (yellow). This change in trend implies that the memecoin has turned previous resistance into support.

Beyond that, the daily chart also shows that the token has surged above the upper trendline of a falling trendline. This breakout indicates that SHIB might have left its bearish trend behind.

Should this trend continue, then the cryptocurrency’s market value might climb much higher than $0.000014.

Bulls, MVRV Ratio Hints at More Upside

From an on-chain perspective, the Bulls and Bears Indicator shows that the number of buyers has outpaced sellers. For context, this metric measures the activity of addresses that bought or sold more than 1% of the trading volume within a specific period.

When bulls outnumber bears, it indicates higher buying pressure. But if it is the reverse, it indicates higher selling pressure.

Within the last seven days, there have been more Shiba Inu bulls. Thus, it is likely that SHIB’s price might continue to jump if the trend remains the same.

Furthermore, on-chain data from Santiment shows that the SHIB’s price increase has also driven the market value to a higher realized value (MVRV) ratio.

This ratio tells whether an asset is overvalued or undervalued. When MVRV is historically high, price corrections precede it. When MVRV dips below 1, it opens up a good long-term entry point.

Historically, SHIB’s price hits a local top when the MVRV ratio is between 13% and 30%. However, as of this writing, the 30-day MVRV ratio is 9.66%, indicating that the memecoin still has room to climb.

Should sentiment around the cryptocurrency remain bullish and demand rise, then SHIB’s price might continue to rally.

SHIB Price to Overcome the $0.000015 Resistance

Assessing the daily SHIB/USD chart again, we noticed that the green line of the Supertrend has appeared below the price. This comes months after the red line has remained above SHIB.

This change in trend indicates that the memecoin has flashed a buy signal. If sustained, SHIB’s price might continue to rise.

Additionally, the Money Flow Index (MFI), which measures buying and selling pressure, has risen to 79.54. Should the MFI rating keep up this pressure, SHIB’s price could breach the $0.000015 resistance.

If validated, this could increase SHIB’s market value to $0.000019, which is near the 0.618 golden pocket ratio.

On the flip side, if the token gets overbought, it could fail to break above the $0.000015 resistance. In that scenario, SHIB could pull back to $0.000010.