Shiba Inu (SHIB), the ever-popular meme coin, has been on a rough ride lately, shedding over 16% of its value in just a week. Yet, recent on-chain indicators are flashing green, hinting that this dip may be setting the stage for a strong recovery. As of now, SHIB is trading at $0.0000141, showing a slight 3% drop in the last 24 hours. Interestingly, trading volume has surged nearly 88%, according to CoinMarketCap—suggesting that investor interest hasn’t waned despite recent losses.
But here’s where things get intriguing: several indicators are now pointing toward the possibility that SHIB may have found its local bottom, and a bounce back could be right around the corner.
MVRV Ratio Suggests a Turning Point
One of the most telling metrics right now is the Market Value to Realized Value (MVRV) ratio. This on-chain indicator, often used to assess whether a crypto asset is overvalued or undervalued, is sitting at a level that mirrors Q3 of 2024—a time that preceded a major price rally for SHIB. Back then, Shiba Inu exploded with a 128% gain. If history repeats itself, SHIB could potentially hit $0.000032 in the coming weeks, a remarkable leap from current levels.
On-Chain Loss Transactions Drop—Capitulation May Be Over
Another bullish signal comes from the drop in daily on-chain transactions conducted at a loss. Earlier this month, that figure ballooned to nearly 5 trillion tokens, signaling widespread capitulation. However, that number has now plummeted to just 579 billion. This drastic reduction implies that most sellers willing to take losses have already exited, thereby easing selling pressure and paving the way for price stabilization.
Smart Money Could Be Accumulating
Adding more fuel to the bullish fire is the Chaikin Money Flow (CMF) indicator on the daily price chart. While SHIB’s price has been sliding, the CMF is climbing—typically a sign that large investors or so-called “smart money” are buying the dip. When institutional or high-volume investors start accumulating during a downtrend, it often precedes a significant price move upward.
The Average Directional Index (ADX) also supports this thesis. A weakening ADX line in a downtrend usually signals that bearish momentum is losing steam, and a reversal could be near.
Can SHIB Break Through $0.000016?
All eyes are now on the $0.000016 resistance level. If SHIB manages to hold its ground above the $0.0000139 support and capitalizes on its current momentum, it could test and potentially break through this critical ceiling. A successful breakout could set the stage for a run toward the next major resistance at $0.000022.
What Traders Should Watch Next
Although SHIB’s recent performance has been turbulent, the convergence of bullish technical and on-chain data paints a promising picture. If broader market conditions improve and Bitcoin or Ethereum lead a new leg up, Shiba Inu could quickly regain its upward trajectory and potentially outperform many of its meme coin peers.
For long-term holders and short-term traders alike, this may be a pivotal moment. The signs of a bottom, combined with surging interest and institutional accumulation, make SHIB one to watch closely in the coming days.
