3 Bullish Shiba Inu Signals as SHIB’s Price Flashes Green: Details
TL;DR
- Rising large transaction volumes and reduced exchange supply suggest a potential for a SHIB price increase.
- On the other hand, a stalled burn rate and a near-overbought RSI could indicate a possible correction.
Is SHIB Preparing for a Bull Run?
The cryptocurrency market flashed green today (September 10), with Shiba Inu (SHIB) among the gainers from the top 20 list. The price of the popular meme coin increased by 2% daily, currently trading at around $0.00001347 (per CoinGecko’s data).
Three important indicators suggest that the rally might be just starting. The first is SHIB’s large transaction volume (where each on-chain transaction exceeds $100,000). The metric soared to almost $45 million on a 24-hour scale, representing a jump of 367% compared to the figure observed on September 9.
A rise in large transactions generally indicates surging interest from whales, which can be interpreted as an encouraging sign by other investors, making them hop on the bandwagon. If these transactions are primarily comprised of buy orders, the price may head north. Conversely, if they are predominantly sells, they could lead to a sharp decline.
Next on the list is Concentration which refers to the difference between the accumulation and reduction of large holders’ positions. The indicator is up 0.09% daily, currently placed in bullish territory.
Last but not least, we will touch upon Shiba Inu’s exchange netflow. Over the last week, outflows have predominantly surpassed inflows, with a major red candle witnessed on September 9. This signals a shift from centralized exchanges toward self-custody methods, meaning reduced immediate selling pressure.
The Bearish Elements
Separately, there are some factors suggesting that the SHIB value could experience another correction soon. The burning program of the meme coin is one of those. The latest data shows that the burn rate has crashed by 100% in the past 24 hours, with zero tokens destroyed for that period.
The mechanism’s ultimate goal is to reduce the tremendous circulating supply of SHIB, making it scarcer and potentially more valuable in time (assuming demand doesn’t go down).
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 price decline. The RSI has been going up in the past few days, reaching nearly 70 on September 9 and currently set at around 60.
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