4 Bullish Shiba Inu Signals as the SHIB Price Taps a 3-Week High: Details

Shiba Inu’s Recent Surge: Bullish Indicators and Bearish Concerns

TL;DR

• Shiba Inu’s recent resurgence coincides with increased large transaction volume and Shibarium activity.
• However, SHIB’s RSI hitting the overbought level of 70 indicates a potential price pullback.

Further Rally on the Horizon?

Shiba Inu (SHIB) has been one of the best-performing cryptocurrencies lately, with its price rising to a three-week high of $0.00001457 on September 19. The meme coin gained momentum following the Fed’s decision to lower interest rates on September 18. It is worth noting that the entire crypto market headed north after the long-anticipated pivot.

The entire crypto market has been experiencing a rally, with many cryptocurrencies gaining significant value. Shiba Inu has been among the top performers, with its price increasing by more than 100% in the past week.

Certain on-chain indicators suggest SHIB’s price may keep pumping in the short term. IntoTheBlock data shows that the “In The Money” metric is up 1.79% on a daily scale. The technical analysis tool measures the change in the number of SHIB investors currently sitting on paper profits.

Large transaction volume (where each SHIB transaction exceeds $100,000) reached over $18 million on a 24-hour scale, representing a 122% increase compared to the figure observed on September 19.

The metric’s increase could trigger a positive investor sentiment and drive an additional number of participants into the ecosystem, hence a fresh flow of capital.

The next factor we will touch upon is the resurgence of Shibarium. Daily transactions on the layer-2 blockchain solution have been gradually rising in the past few days, whereas active accounts have also headed north.

The main purpose of the protocol is to foster the development of the Shiba Inu ecosystem by enhancing scalability, lowering transaction costs, and improving speed.

As such, some market observers believe its further progress could propel a price increase for the meme coin. For more updates on the ecosystem, make sure to check out our Shibarium news.

Shiba Inu’s exchange netflow is the fourth bullish factor we will focus on. Over the past 30 days, outflows have predominantly surpassed inflows, hinting at a shift from centralized platforms to self-custody methods. This could be considered a good sign for the bulls since it reduces the immediate selling pressure.

It’s Not All Sunshine and Roses

Despite the overall favorable conditions, there is one element suggesting SHIB’s value could experience a pullback in the near future.

Specifically, this is the Shiba Inu Relative Strength Index (RSI), which jumped to the overbought territory of 70 today (September 20).

Conversely, readings below 30 signal that the asset could be oversold, meaning a price rally might be just around the corner.

Conclusion

In conclusion, Shiba Inu’s recent surge has been accompanied by several bullish indicators, including increased large transaction volume and Shibarium activity. However, the RSI has hit the overbought level, indicating a potential price pullback. Investors should exercise caution and monitor the situation closely.

FAQs

Q: What is Shiba Inu’s current price?
A: Shiba Inu’s current price is $0.00001457.

Q: What is Shibarium?
A: Shibarium is a layer-2 blockchain solution that aims to enhance scalability, lower transaction costs, and improve speed for the Shiba Inu ecosystem.

Q: What is the significance of the Shiba Inu Relative Strength Index (RSI)?
A: The RSI is a technical analysis tool that measures the change in the number of SHIB investors currently sitting on paper profits. A reading above 70 indicates the asset is overbought, while a reading below 30 indicates it is oversold.

Q: What is the future outlook for Shiba Inu’s price?
A: The future outlook for Shiba Inu’s price is uncertain and subject to various factors, including market conditions and regulatory developments.