TLDR
- Shiba Inu gained 30 percent in the last seven days and reached a key resistance level.
- The current MVRV ratio stands at 22%, indicating a risk of profit-taking among holders.
- The RSI has crossed 70, which signals that Shiba Inu has entered the overbought zone.
- If the price fails to break above the resistance level, it may pull back toward the $0.00001462 support.
- A successful breakout above $0.00001676 could push the price toward the next resistance at $0.00001961.
Shiba Inu (SHIB) recorded a strong 30% surge this week, attracting widespread attention across the digital asset space. The rally pushed the meme coin near key resistance, but technical indicators now suggest a possible reversal. With the market showing signs of overheating, Shiba Inu could face immediate selling pressure in the coming sessions.
Shiba Inu Approaches Resistance While Market Conditions Shift
Shiba Inu is currently trading at $0.00001643, just below the key resistance level of $0.00001676. This level has proven difficult to break in past attempts and remains critical. If Shiba Inu fails to clear this mark, it could trigger a short-term pullback.
The current price level follows a sharp 30% rise within seven days, creating substantial unrealized gains. The sudden surge in price has placed Shiba Inu in a technical zone prone to corrections. Market momentum has shifted quickly, and traders may begin to reduce their exposure.
If the price rejects at the $0.00001676 resistance, SHIB could decline to retest the support level at $0.00001462. A breach below this support may indicate growing downward pressure, potentially extending the pullback. Momentum indicators also highlight reduced strength in continued upward movement.
MVRV Ratio Highlights Rising Risk of a Short-Term Correction
The 30-day Market Value to Realized Value (MVRV) Ratio for SHIB has reached 22%, signaling elevated risk levels. Historically, this range indicates that holders are sitting on notable short-term profits. This often leads to increased distribution and potential price declines.
High MVRV values suggest many participants may begin selling to lock in their recent gains. Past trends show that Shiba Inu experiences corrective phases when the metric enters the 12% to 22% zone. The current data implies a similar pullback risk if conditions remain the same.
SHIB could lose its current gains and shift into a consolidation phase if widespread profit-taking starts. The MVRV level is critical as it reflects unrealized profits across the network. As long as it remains elevated, selling pressure could persist and disrupt further upside moves.
RSI Confirms Overbought Status, Weakening Bullish Outlook
The Relative Strength Index (RSI) for SHIB has moved above the 70 mark, indicating overbought conditions. This suggests the price has moved faster than average demand levels can support. Historically, such conditions result in reduced upward momentum or even price reversals.
Overbought RSI readings often appear near local tops, especially after extended price rallies like Shiba Inu’s recent surge. The indicator reflects a temporary saturation of buyer activity, increasing the probability of near-term declines. Current RSI levels support the outlook of a possible retracement.
However, this scenario could shift if Shiba Inu breaks above $0.00001676 with strong volume. A confirmed breakout would challenge the bearish outlook and push the price toward the next resistance at $0.00001961. Sustained demand and favorable market sentiment would be required for this continuation.
