In recent days, Shiba Inu (SHIB) has shown signs of significant price movement, driven largely by increased network activity and new developments within the Shiba Inu ecosystem. As the cryptocurrency market continues to evolve, Shiba Inu has emerged as a noteworthy player, with its price poised for a potential 17% surge.
On August 23, Shiba Inu’s price surged by 13% to $0.00001614, following a breakout from a consolidation zone. Despite this recent uptick, the price has experienced a slight retracement. However, investor sentiment remains high, fueled by a combination of rising network usage, growing trading volumes, and exciting new developments such as the Shiba Inu Decentralized Autonomous Organization (DAO). Currently, SHIB is approximately 17% away from a crucial resistance level of $0.00001750. If this level is breached, it could trigger a broader bull run for the meme-inspired cryptocurrency.
The primary driver behind this optimism is Shibarium, the network underpinning Shiba Inu. Recent data indicates that Shibarium’s on-chain volume has hit a three-week high, reflecting increased user engagement and activity. The launch of the Shiba Inu DAO, announced on August 24 by the project’s marketing lead, Lucie, is expected to further invigorate the community by decentralizing governance and giving SHIB holders a greater stake in the project’s future.
On August 25, Shibarium network accounts reached an all-time high of 118,470, marking a significant increase in user participation. This growth is mirrored by data from Santiment, which shows a rise in SHIB’s daily active addresses and transaction volumes since August 14. This uptick aligns with the observed 8% increase in SHIB’s price over the same period, suggesting a strong correlation between network activity and price performance.
Futures traders are also contributing to the positive outlook for Shiba Inu. According to Coinglass data, there has been a notable prevalence of long liquidation leverages compared to shorts over the past 24 hours. This indicates that traders are anticipating a price increase. However, a deeper analysis reveals that some traders are closing long positions, possibly in anticipation of a short-term price retracement.
The divergence between the optimistic network growth and the cautious sentiment among futures traders presents a complex scenario for Shiba Inu. Despite the bullish sentiment prevailing, the volatile nature of the cryptocurrency market means that prices can shift rapidly. Currently, SHIB has retraced 8% since Saturday but is approaching a strong support level at $0.00001451. This support zone has historically held the price steady for extended periods, suggesting it could serve as a launching pad for a potential rebound.
In conclusion, while Shiba Inu is currently experiencing a short-term bullish phase, it remains within a broader bearish trend. The cryptocurrency’s future price movement will depend on whether the bullish momentum can overcome the prevailing bearish pressures. If the positive network growth and trader sentiment prevail, SHIB could see its price reach or exceed the $0.00001750 mark, signaling a potential trend reversal. Conversely, if bearish forces dominate, SHIB may retrace to levels seen earlier in August. As always, investors should remain vigilant and consider the inherent volatility of the crypto market when making investment decisions.
