Shiba Inu (SHIB) price has rebounded after a sharp decline, following a three-day selloff that triggered widespread liquidations. The broader crypto market shows signs of recovery, with SHIB surging 10% in the last 24 hours. As a key technical indicator flashes a buy signal, traders speculate whether SHIB can erase another zero in its price.
Is Shiba Inu Price Reversal Likely After This Buy Signal?
Shiba Inu price could be nearing a reversal as its 30-day Market Value to Realized Value (MVRV) ratio plunges to -30.76%, a two-year low. This metric measures the average profit or loss of investors who purchased SHIB in the past 30 days.
MVRV identifies key market areas: the Danger Zone, where high unrealized profits trigger sell-offs, and the Opportunity Zone, which signals potential recovery. For SHIB, when MVRV drops between -15% and -30%, it reflects heavy losses among short-term holders, often leading to capitulation. Historically, such conditions have preceded double-digit rebounds for SHIB.
With the current MVRV deep in the Opportunity Zone, historical trends suggest a recovery rally is possible. If buying pressure increases, SHIB could see a significant price reversal soon.
Source- X
Will SHIB Erase a Zero?
As of Tuesday, the SHIB price hovered at $0.00001540, reflecting a 10% recovery over the past day. Despite ongoing volatility, the meme coin struggles to gain upside momentum, with traders questioning whether it can erase a zero soon.
To erase a zero, SHIB must reach $0.0001, requiring a staggering more than 549% rally from its current price. Given its recent downtrend and weak market sentiment, achieving such an increase appears highly improbable in the short term.
SHIB faces limited chances of reaching significance because RSI signals indicate weakness: The Relative Strength Index stands at 30, which positions SHIB near its oversold zone, yet demand levels persist at a low level. Few traders participate since trading volume has declined to 875 million, thus limiting the potential for a sudden market rise.
Key Levels to Watch for SHIB Holders
The current support level for the SHIB price is $0.00001555. If breached, further downside pressure could push the Shiba Inu price prediction lower below the $0.000015 level.
The Major resistance levels lie at $0.00002, $0.000025, and $0.0003. Breaking past these hurdles will require significant bullish momentum. Broader crypto market trends favor stronger assets, while speculative meme coins struggle for sustained rallies.
SHIB needs an extraordinary rally of over 500% to erase a zero, which remains highly unrealistic in the current market conditions. Without renewed hype, strong whale accumulation, or major ecosystem developments, the token may face resistance and downside pressure.
Shiba Inu Price Chart: TradingView
To sum up, the Shiba Inu price signals buy signal suggests a potential recovery, but erasing a zero remains unlikely. SHIB needs a 549% rally, facing key resistance at $0.00002 and $0.000025. A break below $0.000015 could trigger further downside, while strong accumulation may fuel a rebound.
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