Bitrabo Editorial
Shiba Inu (SHIB) had a lackluster performance in May 2023, but recent on-chain data shows that it has been attracting new demand in the past few weeks. Could this lead to significant price gains for SHIB?
Investors have recently taken notice of Shiba Inu (SHIB) after it lost significant market share to newly-emerged memecoins like PEPE and DOGELON Mars in early May.
The launch of the Shiba Inu cold wallet in May has resulted in an increase in SHIB network growth. How might this affect the price in the days to come?
Shiba Inu is Attracting New Users
Prior to the cold wallet launch on May 29, Shiba Inu saw a surge in network growth, which evaluates the rate at which a blockchain network attracts new users by summing up the number of new wallet addresses created daily. The SHIB network is still attracting new users more than a week later, with an average of 1,500 new addresses being created daily. This represents a 71% increase in the new-user acquisition rate compared to May 21.
As new users flock to the network, a bullish signal indicates the project is gaining market share. Memecoins that made waves in May, such as PEPE, are now losing traction, which suggests that investors are switching attention to SHIB and other resilient meme tokens.
If this trend continues, it’s only a matter of time before the SHIB price breaks above the $0.000009 resistance.
SHIB Is Attracting New Demand
The order books of exchanges suggest that Shiba Inu has been attracting new demand recently, as SHIB holders have placed orders to purchase 1.1 trillion SHIB tokens while sellers have placed only 1 trillion tokens up for sale.
When demand exceeds the supply available on exchanges, competition rises, putting upward pressure on the price. With a supply shortage of 1 billion SHIB, Shiba Inu’s price is likely to rise as buyers compete.
In conclusion, the supply shortage and increase in new users joining the network could soon trigger more price gains.
SHIB Price Prediction: Bulls Target $0.000011
Given the current positive market sentiment, SHIB is likely to reach $0.000011 in the coming weeks.
According to IntoTheBlock’s Exchange On-chain Market Depth, SHIB must beat the $0.000009 resistance before holders can be confident of the bullish reversal. Between the current level and $0.000009, there are 42,540 investors that purchased 8.06 trillion SHIB at the maximum price of $0.000009 who could halt the rally.
If the bullish scenario plays out, the SHIB price is likely to rally towards $0.000011. However, SHIB could slip into a bearish trend if the price drops below the $0.000008 support zone. If that support zone cannot hold, SHIB price could drop further toward $0.0000075.
Disclaimer
This article is for informational purposes only and should not be considered financial or investment advice. Bitrabo is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.