Is SHIB Preparing for a Bull Run?
The cryptocurrency market flashed green today, with Shiba Inu (SHIB) among the gainers from the top 20 list. The price of the popular meme coin increased by 2% daily, currently trading at around $0.00001347 per CoinGecko’s data.
Trends That Suggest SHIB Price Increase
- Rising large transaction volumes and reduced exchange supply suggest a potential for a SHIB price increase.
- On the other hand, a stalled burn rate and a near-overbought RSI could indicate a possible correction.
Three Key Indicators Pointing Towards a Rally
Three important indicators suggest that the rally might be just starting. The first is SHIB’s large transaction volume (where each on-chain transaction exceeds $100,000). The metric soared to almost $45 million on a 24-hour scale, representing a jump of 367% compared to the figure observed on September 9.
A rise in large transactions generally indicates surging interest from whales, which can be interpreted as an encouraging sign by other investors, making them hop on the bandwagon. If these transactions are primarily comprised of buy orders, the price may head north. Conversely, if they are predominantly sells, they could lead to a sharp decline.
Concentration Indicates Bullish Sentiment
Next on the list is Concentration which refers to the difference between the accumulation and reduction of large holders’ positions. The indicator is up 0.09% daily, currently placed in bullish territory.
Shiba Inu’s Exchange Netflow
Over the last week, outflows have predominantly surpassed inflows, with a major red candle witnessed on September 9. This signals a shift from centralized exchanges toward self-custody methods, meaning reduced immediate selling pressure.
The Bearish Elements
Separately, there are some factors suggesting that the SHIB value could experience another correction soon. The burning program of the meme coin is one of those.
The mechanism’s ultimate goal is to reduce the tremendous circulating supply of SHIB, making it scarcer and potentially more valuable in time (assuming demand doesn’t go down).
Conclusion
In conclusion, while the three key indicators suggest that the rally might be just starting, there are some bearish elements that cannot be ignored. The burn rate has stalled, and the RSI is close to overbought levels, which could lead to a correction in the coming days. Nevertheless, SHIB’s large transaction volume, concentration, and exchange netflow indicators all point towards a potentially bullish market in the short term.
FAQs
- Q: What are the three key indicators pointing towards a SHIB price increase?
A: Large transaction volume, Concentration, and exchange netflow. - Q: Why is SHIB’s large transaction volume a good sign?
A: A rise in large transactions generally indicates surging interest from whales, which can be interpreted as an encouraging sign by other investors, making them hop on the bandwagon. - Q: What does the burn rate indicate about SHIB’s price direction?
A: The burn rate’s stall and near-absence of tokens destroyed over the past 24 hours could indicate that the market is not supporting the price increase. - Q: Is the Relative Strength Index (RSI) currently overbought?
A: The RSI has been rising in recent days, but it has not yet crossed the overbought level of 70. - Q: Can SHIB’s current market trend sustain in the long term?
A: The verdict is still out, but the recent developments suggest a potentially bullish market in the short term.
