- Siba Inu saw a spike in network growth.
- SHIB has seen consecutive declines since then.
As an analyst with a decade of experience in the cryptocurrency market, I have seen my fair share of price spikes and declines. The recent growth in Shiba Inu’s network activity has caught my attention, particularly the surge in new wallet addresses and daily active users. This influx of participants often signals growing interest or adoption, which can fuel price appreciation – a pattern we saw with other popular tokens like Bitcoin and Ethereum.
Shiba Inu‘s [SHIB] network expansion has caused quite a stir, leading to conversations about how this development might influence the coin’s price trend.
Looking at indicators like the number of daily active wallets, transaction value, and price fluctuations, we see an intriguing trend. So, what might this current activity imply for Shiba Inu (SHIB)?
Explosive network growth and active participation
It was found that there was a substantial increase in newly created Shiba Inu digital wallets. The data revealed approximately 7,600 new wallet addresses being added to the network, suggesting a large number of new individuals joining the community.
This expansion is frequently linked to heightened curiosity or wider acceptance, either of which can serve as triggers for price rise.
Connecting it with the daily active wallets graph, we see a comparable pattern arising. During that timeframe, daily active wallets spiked above 18,000, which is among the highest activity rates for SHIB in 2022.
The blend of these measurements suggests that not just new participants are joining this environment, but also active members are becoming more involved in transactions.
As a crypto investor, I can’t stress enough the importance of this harmonious relationship between network expansion and active user addresses. In the past, I’ve noticed that this kind of symbiosis often paves the way for powerful price surges. These upward trends typically signal increasing functionality and faith in the asset, which is a very positive sign indeed.
Yet, the significant drop in network expansion following the peak gives rise to speculation about whether this surge is long-lasting or just a temporary response to market fluctuations.
Shiba Inu transaction volume reflects mixed sentiment
The transaction volume chart provides further context. During the peak period of network growth and daily activity, Shiba Inu’s transaction volume exceeded $857 million, underscoring significant trading interest.
Yet, the recent drop to $176.94 million seems to indicate a decrease in investor interest, potentially suggesting either profit-taking or market consolidation.
During peak periods of high transactions, it suggests growing interest. However, maintaining these elevated levels over time is what truly matters.
Should the reduction in transaction volumes persist even as the network expands, Shiba Inu (SHIB) may find it challenging to sustain its current bullish trend.
Can SHIB sustain its rally?
According to AMBCrypto’s assessment, the price of Shiba Inu has surged to challenge a resistance level at 0.00002937 USD, bouncing back strongly from previous dips.
In simpler terms, when the line that shows the average price of a token over the last 50 days goes above the one showing the average price over the last 200 days (a situation known as a “golden cross”), it’s seen as a positive sign for the market. But, if the Relative Strength Index (RSI) is at 66.44, it means the token might be nearing an overbought state, which could indicate that the price has risen too quickly and may soon experience a correction.
To keep its upward momentum going, Shiba Inu (SHIB) needs to stay above crucial support points at approximately 0.000029 USD.
Furthermore, increased network expansion and surge in transaction activity could boost investor trust for potential price increases. If such growth does not occur, there’s a risk that the token might experience a period of stability or even decrease in value.
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2024-12-04 06:15