Shiba Inu (SHIB) Gains New Demand: Will it Drive Price Upward?
Shiba Inu (INU) price had an underwhelming performance in May 2023. On-chain data shows that SHIB has been attracting new demand in recent weeks. Could this translate into significant price gains for SHIB?
Investors are again switching attention to Shiba Inu (SHIB) in recent weeks. This is a positive development after SHIB lost significant market share to newly-emerged memecoins like PEPE and DOGELON Mars in early May.
The recent Shiba Inu cold wallet launch appears to have rejuvenated the SHIB network growth. How could this impact the price in the coming days?
Shiba Inu is Attracting New Users
In the build-up to the cold wallet launch on May 29, Shiba Inu witnessed a spike in Network Growth. Nearly a week later, the SHIB network is still attracting new users.
On May 26, Shiba Inu Network Growth spiked to 2,538 new addresses. And since then, it has maintained an average of 1,500 new addresses created daily.
This represents a 71% increase in the new-user acquisition rate compared to the figures recorded on May 21.
Network Growth evaluates the rate at which a blockchain network attracts new users by summing up the number of new wallet addresses created daily.
When new users flock to a network, a bullish signal indicates the project is gaining market share. Given how PEPE and other memecoins that made waves in May are now losing traction, investors are switching attention to SHIB and other resilient meme tokens.
If this trend endures, it is only a matter of time before the SHIB price breaks above the $0.000009 resistance.
SHIB Is Attracting New Demand
In further confirmation of the bullish outlook, the order books of exchanges suggest that the Shiba Inu has been attracting new demand in recent weeks.
The Exchange on-chain Market depth chart shows an aggregate of the total buy/sell orders placed by SHIB holders across different crypto exchanges.
Currently, SHIB holders have placed orders to purchase 1.1 trillion SHIB tokens. Meanwhile, sellers have placed just 1 trillion tokens up for sale.
Competition increases when demand exceeds the supply available on exchanges, putting some upward pressure on the price. Currently, there is a supply shortage of 1 billion SHIB. This means Shiba Inu’s price will likely rise as buyers begin to compete.
In conclusion, the supply shortage and increase in new users joining the network could soon trigger more price gains.
SHIB Price Prediction: Bulls Targetting $0.000011
Considering the current positive market sentiment, SHIB is likely to reach $0.000011 in the coming weeks. But, 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.
In that zone, 42,540 investors that purchased 8.06 trillion SHIB at the maximum price of $0.000009 could stop the rally. But if the bullish scenario plays out, the SHIB price will likely rally toward $0.000011.
Still, Shiba Inu could slip into a bearish trend if the price drops below the $0.000008 support zone. But the buy-wall mounted by 42,540 investors that bought 8.03 trillion SHIB at the minimum price of $0.000008 will likely prevent the drop.
Although unlikely, if that support zone cannot hold, SHIB price could drop further toward $0.0000075.
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