The Shiba Inu downward trend could soon be over as the meme coin looks primed to register double-digit gains.
Shiba Inu has endured a multi-month downtrend, which began after its price surged to around $0.000045 in March. Ever since, Shiba Inu’s price has plummeted heavily, plunging to a low of $0.00001075 on August 5 before a recovery.
Shiba Inu Primed for 14.92% Gain
Although Shiba Inu has rebounded to $0.00001337 at press time, investors are not pleased with the asset’s recent downward trend.
However, this trend might soon be over as two key SHIB indicators recently turned bullish, indicating potential gains for the asset.
Specifically, Shiba Inu’s Moving Average Convergence Divergence (MACD) signaled positive momentum as the histogram bar above the neutral lines turned green.
Additionally, the Relative Strength Index (RSI) of Shiba Inu edged close to the neutral level at 50. The dog-themed token boasts an RSI of 45, suggesting that a double-digit gain is imminent.
Consequently, Shiba Inu could stage a rally to $0.00001525, marking a surge of 14.92% from its current price of $0.00001337. This could take Shiba Inu closer to hitting last month’s high of $0.00001610.
Several factors, including the massive influx of developers to Shibarium, could also support Shiba Inu’s potential double-digit gains.
Following the launch of the Shibarium development portal (ShibDev), the L2 network witnessed a growth in developer activity. This was reflected in the increase relating to deployed contracts.
Specifically, on September 5, developers deployed 34 contracts on Shibarium, only slightly lower than the 3-month high of 36 contracts registered on July 25. As more developers flock to Shibarium, the network could welcome more decentralized applications (dApps), which could intensify SHIB burns.
Shiba Inu Is Undervalued
In the meantime, Santiment data shows that Shiba Inu’s Market Value to Realized Value (MVRV) ratio over the 30-day timeframe stood at -2.067%. For context, the MVRV indicator determines whether a token is overvalued or undervalued within a specific timeframe.
With SHIB boasting a negative MVRV of -2.067% over the past 30 days, it indicates that Shiba is undervalued.
Also, Shiba Inu’s Network Realized Profit/Loss Metric shows that SHIB traders have incurred losses in the past 30 days. This is reflected in the negative spikes on the chart. These negative spikes stem from the losses investors have suffered, resulting in the liquidation of several long positions.
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