Key Shiba Inu Metrics Skyrocket Today: SHIB Price Rally Incoming?
TL;DR
- Shiba Inu’s price dipped by 3% daily, but the increase of some important indicators part of the ecosystem suggest a potential rally.
- Some analysts predict a bullish future for the meme coin based on technical indicators like the RSI, while others foresee a bearish outcome.
The Indicators’ Explosion
The cryptocurrency market plunged substantially in the last 24 hours following the news that the US government moved $2 billion worth of its bitcoin (BTC) holdings to another address (possibly preparing for a sale).
One of the digital assets that was negatively affected in the aftermath was the popular meme coin Shiba Inu, whose price dipped by 3%. Nonetheless, the resurgence of some important metrics signals that the retreat could be replaced by a rally soon.
The Shiba Inu burn rate, for example, skyrocketed by over 7,000% on a daily scale, resulting in 2.3 million tokens sent to a null address. The USD equivalent of the stash might be insignificant, but continuous efforts in that field will reduce the tremendous circulating supply of the meme coin, potentially driving the price up (assuming demand stays the same or heads north)
SHIB’s whale activity has also been on the rise. IntoTheBlock data shows that aggregated daily volume, where each on-chain transaction exceeds $100K, has pumped by 430%, surpassing $32 million. Daily active addresses have increased, too, albeit in a more modest fashion.
Another essential indicator worth observing is the SHIB exchange netflow. According to CryptoQuant, outflows have predominantly surpassed inflows in the past 30 days, signaling a shift from centralized platforms toward self-custody methods. This is considered bullish for the price of the meme coin since it reduces the immediate selling pressure.
What Are Analysts Saying?
Earlier this week, X user JAVON MARKS argued that SHIB has “confirmed a macro Hidden Bullish Divergence with its RSI,” which could indicate “full recovery” and be followed by a rally to as high as $0.0000456 (a 171% increase from the current valuation).
The Relative Strength Index, which measures the change and speed of price movements, flashed the buy signal on July 25, dropping below 30. Currently, it is hovering in the neutral zone at around 45.
Another X user, on the other hand, envisioned a more bearish scenario. They assumed that SHIB could plummet to $0.000015 if losing the major resistance of $0.000017. It is worth mentioning that the price is trading below that mark at the moment.
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