Three bullish Shiba Inu signals as SHIB price eyes a rebound

TL;DR

Shiba Inu saw an increase in token burning and large transactions, indicating increased interest in whales. Netflow trends suggest reduced selling pressure, while RSI levels hint at potential scope for price recovery. Bullish indicators

The second largest meme coin, Shiba Inu (SHIB), has seen improved volatility recently. Its price rose to a three-month high in late September, but retreated substantially in early October when the entire cryptocurrency market bled heavily.

The past 24 hours, however, have been quite favorable for SHIB, which surged nearly 7% (according to Coingecko data) amid a global resurgence in the meme coin niche.

SHIB Price, Source: CoinGecko

The Shiba Inu’s renaissance coincides with the rise of some important metrics that are part of the ecosystem. The first is the correct execution of the recording program. The team and community destroyed more than 2.3 billion tokens throughout September, which represents a 250% increase compared to August’s figure. Additionally, the burn rate has increased by over 5,000% in the past week.

The effort aims to reduce the circulating supply of SHIB and potentially trigger a rebound in prices (assuming demand stays the same or increases). The total number of tokens burned since the mechanism was adopted equals more than 410 trillion, leaving approximately 583.5 trillion in circulation.

Next on the list is the Big Transactions momentum indicator, which, according to IntoTheBlock, is up 12.5% ​​in the last 24 hours. It tracks the number of transactions that exceed $100,000, often indicating an increase in whale activity. The participation of these large investors could spark enthusiasm among smaller players and thus trigger the flow of new capital into the ecosystem.

Last but not least, we will talk about SHIB’s net exchange flow which has been negative in the last four days. This could be interpreted as a shift from centralized platforms to self-custody methods and could lead to a reduction in immediate selling pressure.

Bonus: the RSI

Another metric worth watching is the Relative Strength Index (RSI), which has been trending down for the past few days. It measures the change and speed of price movements, as readings above 70 usually indicate overbought conditions that can be a precursor to a correction. On the other hand, anything below 30 can be seen as a buying opportunity,

The ratio rose above 80 at the end of September. However, on October 2nd, it fell near the bullish zone of 30 and is currently hovering around 45.

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