Why Is the Shiba Inu (SHIB) Price Up Today?

TL;DR

• Shiba Inu showed strong performance in line with the crypto market’s bullish trend.
• Increased SHIB burns and Shibarium transactions signal ecosystem growth, though RSI above 70 suggests a possible short-term pullback.

SHIB Heads North

The second-largest meme coin in terms of market cap experienced a substantial resurgence in the past 24 hours, with its price tapping a one-month high of $0.00001957. In the following hours, it erased some of the gains, dropping to the current $0.0000189 (per CoinGecko’s data). However, it remains well in the green on a daily and weekly scale. 

SHIB Price, Source: CoinGecko

Its impressive performance coincides with the reigning bullish environment in the cryptocurrency sector. Several hours ago, bitcoin’s (BTC) price exploded to $73,600 (just $150 away from hitting a new all-time high). As of the moment, it trades at around $72,400, representing an 8% weekly increase.

Shiba Inu’s burning mechanism is worth mentioning, too. Over the past 24 hours, the burn rate skyrocketed by 450%, resulting in approximately 52 million tokens sent to a null address. The program’s ultimate goal is to decrease the circulating supply of SHIB, potentially driving its valuation up (assuming demand stays the same or rises). 

Last but not least, we will touch upon Shiba Inu’s layer-2 scaling solution – Shibarium. Daily transactions on the network have soared by 13,500% in the span of 24 hours, suggesting increased user engagement. 

Shibarium officially saw the light of day last August, aimed at fostering the development of the meme coin’s ecosystem. Those willing to check some of the latest upgrades involving the protocol can read our article here. For more updates on the ecosystem, check out our Shibarium news page.

Something for the Bears

Despite the overall bullish conditions mentioned above, one metric indicates a potential retreat for SHIB’s value in the short run.

This is the Relative Strength Index (RSI), which measures the speed and change of price movements. The momentum oscillator varies from 0 to 100 as a ratio above 70 signals the asset could be overbought and poised for a correction. On the other hand, readings below 30 might be interpreted as a buying opportunity.

Currently, the index is hovering at the bearish level of 70.