TL;DR
- Shiba Inu’s recent resurgence coincides with an increased large transaction volume and a rise in Shibarium’s activity.
- However, SHIB’s RSI hitting the overbought level of 70 indicates that a price pullback may be imminent despite the overall positive market conditions.
Further Rally on the Horizon?
Shiba Inu (SHIB) has been among the best-performing cryptocurrencies lately, with its price rising to a three-week high of $0.00001457 on September 19. The meme coin gained momentum following the Fed’s decision to lower interest rates on September 18. It is worth noting that the entire crypto market headed north after the long-anticipated pivot.
Certain on-chain indicators suggest SHIB’s price may keep pumping in the short term. IntoTheBlock data shows that the “In The Money” metric is up 1.79% on a daily scale. The technical analysis tool measures the change in the number of SHIB investors currently sitting on paper profits. As of the moment, 47% of all Shiba Inu investors are in the green, while 51% are underwater.
Large transaction volume (where each SHIB transaction exceeds $100,000) reached over $18 million on a 24-hour scale, representing a 122% increase compared to the figure observed on September 19.
The metric’s increase could trigger a positive investor sentiment and drive an additional number of participants into the ecosystem, hence a fresh flow of capital.
The next factor we will touch upon is the resurgence of Shibarium. Daily transactions on the layer-2 blockchain solution have been gradually rising in the past few days, whereas active accounts have also headed north.
The main purpose of the protocol is to foster the development of the Shiba Inu ecosystem by enhancing scalability, lowering transaction costs, and improving speed. As such, some market observers believe its further progress could propel a price increase for the meme coin. For more updates on the ecosystem, make sure to check out our Shibarium news.
Shiba Inu’s exchange netflow is the fourth bullish factor we will focus on. Over the past 30 days, outflows have predominantly surpassed inflows, hinting at a shift from centralized platforms to self-custody methods. This could be considered a good sign for the bulls since it reduces the immediate selling pressure.
It’s Not All Sunshine and Roses
Despite the overall favorable conditions, there is one element suggesting SHIB’s value could experience a pullback in the near future.
Specifically, this is the Shiba Inu Relative Strength Index (RSI), which jumped to the overbought territory of 70 today (September 20).
Conversely, readings below 30 signal that the asset could be oversold, meaning a price rally might be just around the corner.
