As a seasoned analyst with years of experience navigating the tumultuous seas of the cryptocurrency market, I find myself intrigued by the current trajectory of Shiba Inu (SHIB). The recent surge in its price and increased large transaction volume are certainly noteworthy indicators, particularly in conjunction with the rise in Shibarium’s activity. However, my life experience has taught me that no coin is immune to market fluctuations, and the RSI hitting the overbought level of 70 suggests a potential price pullback may be imminent.
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?
Recently, Shiba Inu (SHIB) has been one of the top performers among cryptocurrencies. On September 19, its price reached a three-week peak of $0.00001457. This surge was largely due to the Federal Reserve’s decision to lower interest rates on September 18, which seemed to boost the meme coin’s momentum. It’s important to mention that following this long-awaited move, the entire cryptocurrency market generally started to trend upward.
According to data from IntoTheBlock, some on-chain indicators point towards a potential continued rise in SHIB‘s price in the near future. The “In The Money” metric, which measures the increase in the number of SHIB investors currently enjoying paper profits, has risen by 1.79% daily. As it stands now, about 47% of Shiba Inu investors are profitable, while slightly more than half (51%) are still in the red.
The amount of significant Shiba Inu transactions (each valued above $100,000) surpassed an impressive $18 million over a 24-hour period, marking a substantial 122% rise compared to the figure recorded on September 19.
As a crypto investor, I see the potential growth in these metrics as a beacon, attracting more optimistic investors to join our thriving ecosystem. This influx could bring a wave of new capital, invigorating and sustaining our collective investment journey.
As an analyst, I’d like to shed light on the recent growth of Shibarium. Over the past few days, we’ve seen a steady increase in daily transactions on its layer-2 blockchain solution. Additionally, the number of active accounts has been climbing as well.
The primary function of this protocol is to nurture the growth of the Shiba Inu community by focusing on scalability, reducing transaction fees, and boosting speed. As a result, some market analysts anticipate that its continued advancement could lead to an increase in the value of the meme token. To stay informed about the ecosystem’s developments, be sure to follow our latest updates on Shibarium news.
Let’s examine the fourth positive factor for Shiba Inu’s exchange: Netflow. Over the past month, outflows have generally been larger than inflows, which suggests a trend towards self-custody rather than centralized platforms. This shift might be advantageous for bulls because it lessens immediate selling pressure.
It’s Not All Sunshine and Roses
Although the general circumstances appear promising, there’s a single factor hinting that SHIB‘s value might temporarily decrease in the upcoming days.
Today, September 20, the Shiba Inu Relative Strength Index (RSI) notably surged into the overbought zone, reaching a level of 70.
In my analysis, readings lower than 30 suggest that the asset may have been overbought, implying that a price recovery could potentially be imminent.
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2024-09-20 10:21