Shiba Inu (SHIB) Price Surge Explained: Key Factors at Play

Shiba Inu (SHIB) has experienced a notable price increase, reaching a one-month high of $0.00001957 before slightly retracting to $0.0000189. This surge aligns with the overall bullish trend in the cryptocurrency market, particularly as Bitcoin (BTC) approaches new all-time highs.

Increased SHIB Burns

A significant factor contributing to SHIB's price rise is the recent spike in token burns. Over the past 24 hours, the burn rate surged by 450%, with approximately 52 million SHIB tokens sent to a null address. This burning mechanism aims to reduce the circulating supply, potentially increasing the token's value if demand remains stable or grows.

Shibarium Transactions on the Rise

The layer-2 scaling solution, Shibarium, has also shown impressive growth, with daily transactions increasing by 13,500% in the last 24 hours. This surge indicates heightened user engagement and reflects the ongoing development of the Shiba Inu ecosystem since Shibarium's launch in August.

Technical Analysis and RSI

Despite the bullish sentiment, a key technical indicator, the Relative Strength Index (RSI), currently hovers at 70, suggesting that SHIB may be overbought and could face a short-term pullback. The RSI is a momentum oscillator that measures the speed and change of price movements, with readings above 70 indicating potential corrections.