**Summary:**
– Shiba Inu has experienced an increase in token burning and large transactions, signaling greater interest from large investors.
– Trends in netflow suggest reduced selling pressure, and RSI levels indicate potential for price recovery.
**The Bullish Indicators**
Shiba Inu (SHIB), the second-largest meme coin, has shown increased volatility. Its price reached a three-month high at the end of September but then decreased significantly at the start of October, coinciding with a broader cryptocurrency market decline. Recently, SHIB has seen a favorable spike of nearly 7%, reflecting a resurgence in the meme coin sector.
The revival of Shiba Inu aligns with the improvement of several key metrics in its ecosystem. The token burning program has been notably successful, with over 2.3 billion tokens destroyed in September, a 250% increase from August, and a burn rate increase of over 5,000% in the past week. This aims to reduce SHIB’s supply and potentially drive a price rally if demand remains steady or increases. To date, over 410 trillion tokens have been burned, leaving around 583.5 trillion in circulation.
Additionally, the Large Transactions metric reported a 12.5% increase in the last 24 hours, indicating heightened activity among large investors, which could boost confidence among smaller investors and attract new capital to the ecosystem.
SHIB’s exchange netflow has been negative over the past four days, suggesting a shift towards self-custody methods and possibly reducing immediate selling pressure.
**Bonus: The RSI**
The Relative Strength Index (RSI) is another important metric, having been on a downward trend recently. It assesses price movement speed and changes, with readings above 70 indicating potential overbought conditions and below 30 suggesting potential buying opportunities. The RSI spiked above 80 at the end of September but dropped close to the bullish zone of 30 on October 2, currently sitting around 45.
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