Shiba Inu (SHIB) Price Spikes 7% as Key Metrics Signal Bullish Revival

The second-largest meme coin, Shiba Inu (SHIB), has experienced enhanced volatility recently. Its price pumped to a three-month high at the end of September

Shiba Inu (SHIB) has experienced increased volatility recently. After reaching a three-month high at the end of September, its price retraced significantly at the beginning of October.

However, over the past 24 hours, SHIB has seen a surge of nearly 7% (according to Coingecko) amid a broader resurgence within the meme coin sector.

This revival coincides with the improvement of several key metrics within the SHIB ecosystem.

Firstly, the burning program has seen substantial activity, with over 2.3 billion tokens burned throughout September — a 250% increase compared to August. Notably, the burn rate has surged by over 5,000% in the past week.

This effort aims to reduce SHIB's circulating supply, potentially leading to a price increase if demand remains stable or rises. In total, over 410 trillion tokens have been burned since the mechanism's adoption, leaving approximately 583.5 trillion still in circulation.

Another indicator that has shown positive movement is Large Transactions, a metric that tracks the number of transactions exceeding $100,000. According to IntoTheBlock, this indicator has surged by 12.5% over the past 24 hours.

This metric is often used to gauge whale activity, and the involvement of such large investors can generate enthusiasm among smaller participants, potentially leading to an influx of fresh capital into the SHIB ecosystem.

Finally, it's worth noting that SHIB's exchange netflow has been negative over the past four days, indicating a shift away from centralized platforms and toward self-custody methods. This could result in reduced immediate selling pressure.

As a bonus, another metric to keep an eye on is the Relative Strength Index (RSI), which has been trending down over the past few days.

This indicator measures the change and speed of price movements, and readings above 70 are usually considered overbought, potentially indicating a precursor to a correction. Conversely, anything below 30 might be viewed as a buying opportunity.

For SHIB, the RSI spiked above 80 toward the end of September, but it dropped close to the bullish zone of 30 on October 2 and currently stands at around 45.

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