Why is the price of Shiba Inu (SHIB) going up today?

TL;DR

Shiba Inu showed good performance in line with the uptrend of the crypto market. Rising SHIB burns and Shibarium transactions indicate growth in the ecosystem, although RSI above 70 suggests a possible short-term pullback. SHIB heads north

The second largest meme coin by market cap experienced a substantial resurgence in the past 24 hours, with its price hitting a one-month high of $0.00001957. In the following hours, it erased some of the gains, dropping to the current $0.0000189 (according to CoinGecko data). However, it remains well in the green on a daily and weekly scale.

SHIB Price, Source: CoinGecko

Its impressive performance coincides with the prevailing bullish environment in the cryptocurrency sector. Several hours ago, the price of bitcoin (BTC) exploded to $73,600 (just $150 away from hitting a new all-time high). It is currently trading around $72,400, which represents a weekly increase of 8%.

Also worth mentioning is the Shiba Inu’s combustion mechanism. Over the past 24 hours, the burn rate skyrocketed by 450%, resulting in approximately 52 million tokens being sent to a null address. The ultimate goal of the program is to decrease the circulating supply of SHIB, which could push its valuation higher (assuming demand stays the same or increases).

Last but not least, we’ll talk about Shiba Inu’s layer 2 scaling solution: Shibarium. Daily transactions on the network have skyrocketed by 13,500% in a 24-hour period, suggesting increased user engagement.

Shibarium was officially launched last August, with the aim of fostering the development of the meme currency ecosystem. Those who want to check some of the latest updates involving the protocol can read our article here. For more updates on the ecosystem, check out our Shibarium News page.

Something for the bears

Despite the overall bullish conditions mentioned above, one metric indicates a potential pullback in SHIB’s value in the near term.

This is the relative strength index (RSI), which measures the speed and change of price movements. The momentum oscillator ranges from 0 to 100, as a ratio above 70 indicates that the asset could be overbought and ready for a correction. On the other hand, readings below 30 could be interpreted as a buying opportunity.

The index is currently at the bearish level of 70.

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