3 Bullish Shiba Inu Signals While SHIB Price Flashes Green – Details

TL;DR

The increase in large transaction volumes and reduced exchange supply suggest a potential for an increase in SHIB’s price. On the other hand, a stagnant burn rate and an almost overbought RSI could indicate a potential correction. Is SHIB preparing for a bull run?

The cryptocurrency market was green today (September 10), with Shiba Inu (SHIB) among the top 20 list winners. The price of the popular meme coin increased by 2% daily, currently trading around $0.00001347 (according to CoinGecko data).

SHIB Price, Source: CoinGecko

Three important indicators suggest that the rally may be starting. The first is SHIB’s large transaction volume (where each on-chain transaction exceeds $100,000). The metric soared to nearly $45 million on a 24-hour scale, representing a 367% jump compared to the figure seen on September 9.

An increase in large transactions generally indicates increased whale interest, which can be interpreted as an encouraging sign by other investors, getting them on the bandwagon. If these trades are mostly made up of buy orders, the price can go north. Conversely, if they are predominantly sold, they could cause a sharp decline.

Next on the list is concentration which refers to the difference between the accumulation and reduction of the positions of the major holders. The indicator rises by 0.09% daily, currently located in bullish territory.

Last but not least, we will discuss the net exchange flow of Shiba Inu. Over the last week, outflows have predominantly exceeded inflows, with a major red candle witnessed on September 9. This indicates a shift from centralized exchanges to self-custody methods, which means a reduction in immediate selling pressure.

SHIB Exchange Netflow, Source: CryptoQuant The Bearish Elements

Separately, there are some factors that suggest the SHIB value could experience another correction soon. The meme coin burning program is one such. The latest data shows that the burn rate has dropped by 100% in the last 24 hours, with zero tokens destroyed during that period.

The ultimate goal of the mechanism is to reduce the huge circulating supply of SHIB, making it scarcer and potentially more valuable over time (assuming demand doesn’t wane).

The Relative Strength Index (RSI) is also worth mentioning. This momentum oscillator measures the change and speed of price movements, ranging from 0 to 100, and helps traders identify overbought or oversold conditions.

A ratio above 70 indicates that SHIB is overbought, which could be followed by a drop in price. The RSI has been rising over the past few days, reaching nearly 70 on September 9 and currently hovering around 60.

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