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Shiba Inu (SHIB) is experiencing a surge in network growth, marked by a significant rise in new wallet addresses, reflecting heightened investor interest.
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This development comes on the heels of an impressive uptick in daily active users, suggesting a potential shift in market dynamics.
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As pointed out by analysts from Santiment, “the correlation between new addresses and daily activity may precede notable price movements for Shiba Inu.”
Shiba Inu’s network growth and surge in active addresses signal potential upward momentum, as new investors join the ecosystem. Discover the latest trends.
Unprecedented Network Growth Sparks Interest in SHIB
The recent swell in Shiba Inu’s new wallet addresses signals an impressive expansion within its ecosystem. More than 7,600 new addresses emerged over a short period, marking one of the highest growth rates recorded this year. This trend typically indicates an influx of speculative interest and potentially broader adoption, both of which are crucial for price appreciation.
Source: Santiment
Alongside this growth, daily active addresses skyrocketed to over 18,000, showcasing one of the highest engagement levels for the SHIB blockchain this year. The convergence of these two metrics not only indicates that new users are joining the ranks but that existing holders are becoming more active in transactional activities.
Source: Santiment
This synergy of increased network growth and daily active addresses is vital for projecting future price movements. Historically, such a framework often precedes significant price rallies, suggesting that confidence and utility in the asset are on the rise. However, recent fluctuations post-peak growth pose questions about the sustainability of this upward momentum.
Transaction Volume Insights Reveal Market Sentiment
Insights from transaction volume metrics provide further context to SHIB’s market position. During the peak of network activity, total transaction volumes spiked over $857 million, reflecting robust trading interest. Yet, the subsequent decline to $176.94 million indicates a potential cooling of enthusiasm, raising concerns over possible profit-taking behaviors in the market.
Source: Santiment
High transaction volumes often signal rising demand, but their sustainability remains a concern. If transaction volumes continue to drop alongside new address growth, Shiba Inu may face challenges in maintaining its bullish trajectory.
Assessing Shiba Inu’s Rally Potential
According to COINOTAG’s analysis, Shiba Inu recently tested the resistance level at $0.00002937, demonstrating significant recovery from earlier lows. The formation of a golden cross with the 50-day moving average crossing above the 200-day moving average further supports bullish sentiment. However, the current Relative Strength Index (RSI) reading of 66.44 indicates that the asset could be edging into overbought territory.
Source: TradingView
For SHIB to extend its rally, it must secure its position above significant support levels at $0.000029. Continuous spikes in both network growth and transaction volumes are crucial to maintain investor confidence and push the price further upward. Absent these factors, a phase of consolidation or retracement could ensue, tempering current optimism.
Conclusion
The recent increase in wallet addresses and daily active users signals a positive shift for Shiba Inu, reflecting rising interest and engagement. However, the sustainability of this momentum depends significantly on transaction volumes and the ability to maintain support levels. Investors should remain vigilant and consider the broader market context as they navigate the evolving landscape of SHIB.
