Shiba Inu (SHIB) Price Prediction: Strong Rebound but Overvaluation, Pullback Risk Still Exists

The price of Shiba Inu (SHIB) has increased by 7% in the past 24 hours, officially breaking free from the downward trend that has plagued investors for months. This recovery has injected new vitality into the market and brought expectations for a sustainable growth cycle. However, this optimistic sentiment may soon be challenged, as a significant factor is quietly threatening the price movement of SHIB in the near future.

SHIB may face reversal risk

The network value to transaction (NVT) ratio of SHIB has just reached its highest level in nearly a year, which may be a dangerous signal. The sharp rise in NVT indicates that SHIB's market cap far exceeds its actual trading volume – a typical sign of overvaluation.

The sudden surge of NVT has raised concerns that the current price of SHIB may lack solid foundations and may be difficult to maintain in the long term. Historically, after assets are overvalued, prices often undergo significant corrections as the market returns to equilibrium.

However, amidst concerns over valuation, technical signals show a different picture. The relative strength index (RSI) of SHIB has broken above the neutral level of 50.0 for the first time in over six weeks, indicating a renewed buying pressure, reflecting a clear improvement in investor sentiment.

If this improvement continues, the positive momentum of the Relative Strength Index (RSI) may become an important support, helping SHIB maintain its upward trend in the face of pullback pressure at high valuations. The balance between valuation risk and technical signals will be a key factor in determining the future trend of the asset.

SHIB needs to maintain support zone

As of the writing of this article, the price of Shiba Inu (SHIB) has risen to $0.00001198, officially breaking a two-month long fall trend—this is a positive signal indicating that market sentiment may be shifting towards bullish. However, this round of pump still faces many challenges, particularly concerns over overvaluation, which leave the market skeptical about whether the upward trend can be sustained.

Currently, SHIB is trying to test the level of 0.00001188 USD to transform it into a new support area. However, against the backdrop of unstable investor sentiment, selling pressure is continuously increasing, creating uncertainty over whether this price range can be maintained. If the bears gain the upper hand, SHIB may enter a accumulation phase within the range of 0.00001188 USD to 0.00001141 USD, or even further retrace to 0.00001059 USD.

On the contrary, if buying pressure continues to dominate and prices break through valuation barriers, SHIB has the opportunity to accelerate towards the important resistance level of 0.00001252 USD. Breaking through this level will not only confirm the restoration of the upward trend but also open up the prospect of approaching 0.00001344 USD—thereby completely negating the bearish scenario and enhancing the mid-term growth momentum.

(Source: Trading View)