Shiba Inu (SHIB) Records a Strong 30% Surge This Week

The rally pushed the meme coin near key resistance, but technical indicators now suggest a possible reversal.

Shiba Inu (SHIB) price rose sharply this week, gaining 30% in seven days and pushing towards key resistance. However, technical indicators suggest that the rally might be facing difficulties continuing in the coming sessions.

Shiba Inu is currently trading at $0.00001643, approaching the key resistance level of $0.00001676. This level has been tested several times before and poses a significant hurdle to further gains. If this mark isn’t cleared, it could trigger a short-term pullback.

This price level follows a sharp rally that generated substantial unrealized gains. These gains are signaled by the 30-day Market Value to Realized Value (MVRV) Ratio for SHIB, which reached 22% this week.

This range is usually encountered when holders are sitting on notable short-term profits, which tends to increase distribution and spark price declines.

High MVRV values indicate that many participants might begin selling to lock in their recent earnings, especially considering the recent price surge. Past trends show that Shiba experiences corrective phases when this metric enters the 12% to 22% zone.

The current data suggests that there is a risk of a similar pullback if these conditions persist.

Shiba 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 high, selling pressure could continue and disrupt further upside moves.

The Relative Strength Index (RSI) for SHIB moved above the 70 mark this week, signaling overbought conditions. This suggests that the price has moved faster than average demand levels can support.

Usually, 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's recent surge. The indicator reflects a temporary saturation of buyer activity, which increases the probability of near-term declines.

Current RSI levels support the outlook of a possible retracement, especially if the price fails to clear the $0.00001676 resistance.

However, this scenario could shift if Shiba breaks above the $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 and to overcome the threat of a technical correction.