Is SHIB ready for a price reversal?

TL;DR

Despite recent market declines, SHIB’s RSI indicates an oversold condition, presenting a potential buying opportunity. The upcoming release of TREAT and the net negative exchange flow also suggest a possible price bomb for the second largest meme coin. Is it time for the bears to step down?

The past 24 hours have been quite painful for the cryptocurrency market. The entire market capitalization of the sector has plunged 5.5% and is currently below $3.3 trillion. Meanwhile, leading cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Solana (SOL), Cardano (ADA), are well in the red on a daily basis.

The popular meme coin Shiba Inu (SHIB) is also among the losers. Its price has fallen by 7% in the last 24 hours and at the time of writing is worth about $0.00002023 (according to CoinGecko data).

SHIB Price, Source: CoinGecko

Contrary to the bearish picture, one important metric suggests good days ahead for the bulls. This is the Shiba Inu Relative Strength Index (RSI), which measures the change and speed of price movements.

The technical analysis tool ranges from 0 to 100, and any ratio below 30 indicates that the asset could be oversold and undervalued. In turn, this indicates a potential buying opportunity. The RSI has hovered between 30 and 55 over the past five days, with the last time dropping as low as 29.

Additional factors

Another element that suggests that the price of the self-proclaimed killer Dogecoin could rise in the short term is the net exchange flow of the asset. SHIB outflows have significantly outpaced inflows in the past week, according to CryptoQuant data.

This indicates a shift from centralized platforms to self-custody methods and could be considered bullish as it reduces immediate selling pressure.

Last but not least, we’ll talk about TREAT’s upcoming release. The reward portion of the Shiba Inu ecosystem is scheduled to go live later this week. The development could spark enthusiasm throughout the community, potentially leading to more people jumping on the bandwagon and a subsequent price increase for SHIB.

It is worth mentioning that the launch of TREAT has already caught the attention of some leading crypto exchanges who have announced that they will allow trading of services with the meme coin. Some examples are KuCoin and MEXC Exchange.

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