TL;DR

Despite recent market declines, SHIBs RSI indicates an oversold condition, presenting a potential buying opportunity. The upcoming launch of TREAT and the negative exchange netflow also suggest potential price pump for the second-largest meme coin.

Is It Time for the Bears to Step Down?

The last 24 hours have been quite painful for the cryptocurrency market. The entire capitalization of the sector has plummeted by 5.5% and currently stands below $3.3 trillion. For their part, leading cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Solana (SOL), Cardano (ADA), are well in the red on a daily scale. 

The popular meme coin Shiba Inu (SHIB) is also among the losers. Its price has fallen by 7% in the past 24 hours and, as of this writing, is worth around $0.00002023 (per CoinGeckos data).

SHIB Price, Source: CoinGecko Contrary to the bearish landscape, one important metric suggests good days ahead for the bulls. This is Shiba Inus Relative Strength Index (RSI), which measures the change and speed of price movements.

The technical analysis tool varies from 0 to 100, and any ratio below 30 indicates that the asset might be oversold and undervalued. For its part, this signals a potential buying opportunity. The RSI has been hovering between 30 and 55 for the past five days, most recently dropping to as low as 29.

Additional Factors

Another element suggesting that the price of the self-proclaimed Dogecoin killer might rally in the short term is the assets exchange netflow. According to CryptoQuants data, SHIB outflows have significantly surpassed inflows in the past week. 

This signals a shift from centralized platforms toward self-custody methods and could be viewed as bullish since it reduces the immediate selling pressure.

Last but not least, we will touch upon the upcoming launch of TREAT. The reward token part of Shiba Inus ecosystem is scheduled to go live later this week. The development could spur enthusiasm across the community, potentially leading to more people jumping on the bandwagon and a subsequent price rally for SHIB.

It is worth mentioning that TREATs launch has already caught the attention of some leading crypto exchanges that have announced they will allow trading services with the meme coin. Examples are KuCoin and MEXC Exchange.