SHIB’s Price May Remain Dormant Despite Rising On-Chain Metrics
An analyst from the cryptocurrency trading and analysis channel ClayBro revealed in a YouTube video today that Shiba Inu (SHIB) has recorded a 198.4% increase in the number of 7-day zero balance addresses on its network. Although this is a notable uptick, the analyst stated that the chances of SHIB’s price rising as a result of this metric are very small.
The ClayBro analyst added that an increase in wallet addresses containing no SHIB is not a remarkable achievement given the possibility that these wallets may not actively participate in transacting on the network. Nevertheless, the analyst did not rule out the possibility of these wallets transacting on the network in the future.
A deeper look at on-chain metrics for SHIB reveals that the number of new wallets being created on the SHIB network has actually been decreasing. According to the analyst, there has been around a 21% decrease in the number of new wallets being created on the SHIB network.
Meanwhile, the amount of active addresses has increased. Although an increase in transactional activity on the SHIB network can be seen as a positive metric, the analyst mentioned that this activity can be both buy and sell activity. Therefore, he speculated that the uptick in this specific metric may not lead to the meme coin’s price rising.
Daily chart for SHIB/USDT (Source: TradingView)
From a technical standpoint, SHIB was trading below the 20-day EMA line at press time. Furthermore, the altcoin has been in a consolidation phase between $0.00000700 and $0.00000755 over the past 3 weeks.
Should SHIB close a daily candle above the 20-day EMA line, which was situated at $0.00000732, then it may finally escape this consolidation phase and rise towards $0.00000847 through the course of the following couple of weeks. Conversely, SHIB breaking below the lower level of the consolidation channel could lead to it falling to $0.00000633.
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