Is Shiba Inu Poised for More Gains? Key Indicators Suggest Bullish Future

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Shiba Inu (SHIB) recently reached a three-week high of $0.00001457 on September 19, marking a strong performance. This price surge followed the Federal Reserve’s decision to lower interest rates on September 18. The entire crypto market, including SHIB, rallied after this pivotal shift in monetary policy.

Shiba Inu on-chain indicators — *Source| IntoTheBlock*

Several key on-chain indicators suggest SHIB could continue climbing in the near term. According to IntoTheBlock data, the “In The Money” metric increased by 1.79% on a daily scale. This metric tracks the number of SHIB investors holding positions at a profit. Currently, 47% of all SHIB holders are in profit, while 51% remain underwater. This growing profitability could entice more investors to enter the SHIB market.

In addition, SHIB witnessed a significant jump in large transaction volume, which measures transactions exceeding $100,000. Over the past 24 hours, this volume exceeded $18 million, representing a 122% rise from the previous day. Such an increase often indicates growing confidence among large investors, potentially attracting new participants and fresh capital to the ecosystem.

Shibarium’s Progress Fuels Optimism

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Shibarium, SHIB’s layer-2 blockchain, has shown signs of recovery. Daily transactions have increased, and the number of active accounts is also rising. Shibarium aims to enhance the Shiba Inu ecosystem by improving scalability, lowering transaction costs, and increasing speed. As the protocol progresses, many believe it could drive SHIB’s price higher.

Exchange Netflow Shows Reduced Selling Pressure

Shiba Inu exchange netflow — *Source| CryptoQuant*

Another bullish sign for SHIB is its exchange netflow. Over the past 30 days, outflows have outpaced inflows. This indicates that more SHIB holders are transferring tokens to self-custody wallets, reducing the immediate selling pressure on centralized exchanges. Fewer tokens on exchanges typically signal bullish sentiment, as holders are less likely to sell.

Overbought Conditions Suggest Possible Pullback

Shiba Inu RSI Tracker — *Source| CryptoWaves*

Despite these positive developments, one cautionary signal stands out. SHIB’s Relative Strength Index (RSI) could hit 70 on September 20, entering the overbought zone. Typically, an RSI above 70 indicates that an asset may be due for a pullback. While SHIB has strong upward momentum, this overbought condition suggests some short-term correction could be on the horizon.