Shiba Inu (SHIB) price sets its eyes on record highs, with two on-chain metrics suggesting that it may skyrocket soon. These metrics hint that the meme coin has entered an accumulation phase, which may renew the bullish momentum and spark an upward trend.
Despite bullish tailwinds, SHIB value today remains subdued and is down by 15% from its April highs of $0.000015. At press time, the coin trades at $0.000013 with a mild 0.03% gain in 24 hours.
Shiba Inu Price Analysis as 108% Rally Looms
The daily chart for Shiba Inu price hints that an explosive rally is looming, as the meme coin teases a breakout from an accumulation zone after overcoming resistance from a descending trendline. The next key level to watch is $0.00001364, and if it can form a decisive close above it, it will flip the market structure to bullish.
If this breakout occurs, and SHIB holds above the MA level of $0.0000182, a reaccumulation phase will likely play out before a potential 108% rally to $0.0000286.
The RSI stands at 54, an indication that the bullish momentum is strong to support an upward trend. However, traders should remain wary of a weakening uptrend as the AO bars suggest that the bullish sentiment is weak.
Despite the weak outlook depicted by the AO bars, two key on-chain metrics hint that the 108% will likely out, and the SHIB price could skyrocket soon.
MVRV Ratio, On-Chain Losses Hint At Explosive SHIB Rally
The Shiba Inu Market Value to Realized Value (MVRV) ratio teases that the price of this top meme coin is about to enter an explosive bull market. This metric is at the same level it was in Q3 2024 before a 54% rally ensued within two months, followed by another 94% surge in Q4. This surge saw SHIB clinch a multi-month high of $0.000033 in late 2024.
If history rhymes and SHIB follows the same trend, and the price skyrockets by 94%, the new target will be $0.0000259. This supports the thesis around a bullish Shiba Inu price prediction and the possibility of fresh highs being formed soon.
Meanwhile, data from Santiment shows that the ratio of daily on-chain transaction volumes in profits and losses has plummeted to 0.24%, marking the lowest level in nearly two months. This indicates that most holders are in losses, a fact that has always preceded a strong bounce as traders are less incentivised to sell.
If the Shiba Inu price follows previous trends and these on-chain metrics hint towards a rally, the meme coin will skyrocket and potentially reach new record highs. However, this rally faces headwinds considering that traders have been flocking to newer meme coins, which have diverted capital away from older coins.
The post Here’s Why Shiba Inu Price May Skyrocket Soon appeared first on CoinGape.