Three Bullish Signals for Shiba Inu as Price Aims to Rebound

TL;DR

• Shiba Inu has experienced an increase in token burning and sizable transactions, reflecting heightened interest from whales.
• Netflow patterns indicate less selling pressure, while RSI metrics suggest potential for a price rebound.

The Bullish Indicators

The second-largest meme cryptocurrency, Shiba Inu (SHIB), has seen increased volatility lately. The price reached a three-month peak at the end of September but faced a significant pullback at the start of October when the broader crypto market faced substantial losses.

In the past 24 hours, however, SHIB has shown strong performance, surging nearly 7% (according to Coingecko’s data) amidst a revival in the meme coin sector.

The surge in Shiba Inu’s value corresponds with the growth of several key metrics within the ecosystem. Notably, there has been a successful rollout of the burning program, where the team and the community eliminated over 2.3 billion tokens in September, showcasing a 250% increase relative to August. Furthermore, the burn rate has risen by over 5,000% just within the last week.

This initiative aims to decrease SHIB’s circulating supply, potentially instigating a price increase (assuming that demand remains stable or grows). Since the mechanism’s adoption, a total of over 410 trillion tokens have been burned, leaving around 583.5 trillion in circulation.

Another significant indicator is the Large Transactions momentum metric, which, as reported by IntoTheBlock, has increased by 12.5% in the last 24 hours. This metric tracks transactions above $100,000, often indicating heightened activity from whales. The participation of such substantial investors may initiate excitement among smaller traders and consequently bring in new capital into the ecosystem.

Lastly, we should discuss SHIB’s exchange netflow, which has turned negative over the last four days. This might indicate a transition from centralized exchanges to self-custody options, possibly resulting in less immediate selling pressure.

Bonus: the RSI

Another valuable metric to monitor is the Relative Strength Index (RSI), which has been on a decline recently. It assesses the velocity and change of price movements with values above 70 usually indicating overbought conditions that may precede a correction. Conversely, readings below 30 might be interpreted as a potential buying opportunity.

The index peaked above 80 at the end of September. However, on October 2, it fell close to the bullish threshold of 30 and is currently hovering around 45.