4 Bullish Shiba Inu Signals as SHIB Price Hits 3-Week High – Details

TL;DR

The recent resurgence of the Shiba Inu coincides with an increase in high transaction volume and an increase in Shibarium activity. However, SHIB’s RSI reaching the overbought level of 70 indicates that a price pullback may be imminent despite overall positive market conditions. More concentration on the horizon?

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

SHIB Price, Source: CoinGecko

Some on-chain indicators suggest that SHIB’s price may continue to rise in the short term. Data from IntoTheBlock shows that the “In The Money” metric is up 1.79% on a daily basis. The technical analysis tool measures the change in the number of SHIB investors currently holding paper profits. Right now, 47% of all Shiba Inu investors are in the green, while 51% are underwater.

The high transaction volume (where each SHIB transaction exceeds $100,000) exceeded $18 million on a 24-hour scale, representing a 122% increase compared to the figure seen on September 19.

The increase in the metric could lead to positive investor sentiment and drive an additional number of participants in the ecosystem, thus a new flow of capital.

The next factor we’ll touch on is the resurgence of Shibarium. Daily transactions on the Layer 2 blockchain solution have been gradually increasing in recent days, while active accounts have also headed north.

The main goal of the protocol is to encourage the development of the Shiba Inu ecosystem by improving scalability, reducing transaction costs and improving speed. As such, some market watchers believe that its further progress could fuel a rise in the price of the meme coin. For more updates on the ecosystem, be sure to check out our Shibarium News.

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

It’s not all sunshine and roses

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

Specifically, it’s the Shiba Inu Relative Strength Index (RSI), which jumped into overbought territory of 70 today (September 20).

Conversely, readings below 30 indicate that the asset could be oversold, meaning it could be on the verge of a price rally.

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