The Shiba Inu [SHIB] network has experienced a significant uptick in growth recently, leading to discussions about its potential impact on the token’s price trajectory.
With metrics like daily active users, transaction volume, and price fluctuations painting a compelling picture, what does this recent uptick signify for SHIB?
Rapid Expansion of the Network and Active Engagement
An analysis revealed a notable surge in new wallet addresses associated with Shiba Inu. Data indicated that the network saw a rise of over 7,600 new addresses, indicating a substantial inflow of new participants.
This surge is often linked to heightened speculative interest or wider adoption, both of which can serve as drivers for price appreciation.
When looking at the daily active addresses chart alongside this data, a similar pattern emerges. Active addresses spiked to over 18,000 during the same period, marking one of the highest activity levels for SHIB this year.
This alignment between network growth and active addresses is crucial, as it historically precedes significant price surges, indicating an increase in utility and confidence in the asset.
However, the sharp drop in network growth post-surge raises questions about the sustainability of the momentum or whether it is a short-term response to market conditions.
Shiba Inu Transaction Volume Signals Varied Sentiment
A deeper dive into the transaction volume chart provides additional context. Amid the peak of network growth and daily activity, Shiba Inu witnessed a transaction volume surpassing $857 million, highlighting a substantial trading interest.
Nevertheless, the current decline to $176.94 million suggests a waning enthusiasm, possibly indicating profit-taking or market consolidation.
While elevated transaction volumes during spikes indicate increasing demand, the durability of these levels is crucial. If transaction volumes continue to dwindle alongside network growth, SHIB may struggle to uphold its recent bullish momentum.
Is SHIB’s Rally Sustainable?
Analysis by CryptoCrypto reveals that Shiba Inu recently surged to test resistance at $0.00002937, representing a significant recovery from previous lows.
The emergence of a golden cross, where the 50-day moving average surpasses the 200-day moving average, is a bullish sign. However, with the RSI standing at 66.44, hints that the token could be nearing overbought territory.
For SHIB to maintain its rally, it must sustain its position above crucial support levels at $0.000029.
Moreover, a resurgence in network growth and spikes in transaction volume would reinforce confidence in further price increases. Lack of these factors might push the token into a consolidation phase or retracement.