Shiba Inu (SHIB), the second-largest meme cryptocurrency by market capitalization, has experienced a significant surge, reaching a one-month high of $0.00001957 before slightly retracing to its current price of $0.0000189, according to data from CoinGecko. This bullish momentum aligns with the broader cryptocurrency market trend, where Bitcoin (BTC) recently soared to $73,600, just $150 shy of a new all-time high, and currently trades around $72,400, marking an 8% increase over the past week.
Several factors contribute to SHIB’s robust performance:
1. **Increased Token Burns**: The SHIB token burn rate has spiked by 450% in the last 24 hours, with approximately 52 million tokens sent to a null address. This process aims to reduce the circulating supply of SHIB, potentially bolstering its value if demand remains constant or increases.
2. **Shibarium’s Growing Adoption**: Transactions on Shibarium, Shiba Inu’s layer-2 scaling solution, have surged by 13,500% in the past 24 hours, indicating heightened user engagement. Shibarium, launched in August, aims to foster the development of the Shiba Inu ecosystem.
However, the Relative Strength Index (RSI), a momentum oscillator that measures the speed and change of price movements, suggests a possible short-term pullback for SHIB. With the RSI currently hovering at 70, which typically indicates overbought conditions, the asset might be poised for a correction. Conversely, readings below 30 are often interpreted as buying opportunities.
