Bitrabo Editorial
Shiba Inu (SHIB) has rebounded 5% since hitting a one-month low of $0.0000084 on May 24. Recent on-chain data indicates that SHIB holders are moving their tokens off exchanges, which could potentially trigger a supply crunch and drive price momentum. This comes as Shiba Inu is set to launch its highly anticipated native cold wallet on May 29. Developed in collaboration with Tangem, a Switzerland-based blockchain firm, the cold wallet is expected to expedite the global adoption of Shiba Inu while encouraging self-custody among SHIB holders.
In recent weeks, SHIB investors have been rehearsing for the upcoming launch by transferring their tokens off exchanges. According to Glassnode, the SHIB balance on exchanges has decreased by 92 billion tokens between May 16 and May 29. Historically, a reduction in balance on exchanges causes relative scarcity in the market, which can trigger a price surge. If the cold wallet is well-received, more SHIB holders may move their tokens into self-custody, further reducing the market supply and potentially driving up the price to new highs.
Additionally, the volume of network traction for Shiba Inu has also increased in recent weeks. From May 20 to May 29, the number of active addresses on the Shiba Inu network rose by 25% from 16,305 to 20,442 active users. This indicates a surge in demand for the network services and the SHIB native token. In the coming weeks, if tokens keep moving off exchanges and network participants continue to increase, SHIB could enter another bull rally.
However, SHIB must overcome the $0.0000095 resistance in order to reach the $0.000011 price prediction, according to IntoTheBlock’s Exchange On-chain Market Depth. A failure to do so could result in a bearish trend that could drive the price down to $0.0000075.
Disclaimer
This article is for informational purposes only and should not be considered financial or investment advice. Bitrabo is committed to unbiased reporting, but market conditions are subject to change at any time. Always conduct your own research and consult with a professional before making any financial decisions.