Why is Shiba Inu (SHIB) price increasing today?

TL;DR

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

SHIB heads north

The second largest coin in terms of the market cap saw a substantial resurgence over the past 24 hours, with its price reaching a one-month high of $0.00001957. In the hours that followed, he erased some of the gains, falling to the current level of $0.0000189 (according to CoinGecko data). However, it remains well in the green on a daily and weekly scale.

Its impressive performance coincides with the bullish environment prevailing in the cryptocurrency sector. A few hours ago, the price of Bitcoin (BTC) exploded at $73,600 (only $150 from struck a new absolute record). For nowit is trading at around $72,400, representing an 8% weekly increase.

The burning mechanism of the Shiba Inu is also worth mentioning. Over the past 24 hours, the burn rate skyrocketed by 450%, resulting in approximately 52 million tokens being sent to a null address. The ultimate goal of the program is to decrease the circulating supply of SHIB, which could increase its valuation (assuming demand stays the same or increases).

Finally, we will discuss the layer 2 scaling solution of Shiba Inu – Shibarium. Daily transactions on the network increased by 13,500% in the duration of 24 hours, which suggests increased user engagement.

Shibarium was officially created last August, with the aim of promoting the development of the local ecosystem. Those interested in checking out some of the latest updates involving the protocol can read our article here. For more ecosystem updates, check out our Shibarium news page.

Something for the bears

Despite the overall bullish conditions mentioned above, one metric indicates a potential pullback in SHIB’s value in the near term.

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

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