Shiba Inu price surged 13% to $0.00001614 after breaking out of a consolidation zone on August 23, though it has since retraced. Investor optimism is growing, driven by increased network usage and volume, along with new developments like the Shiba Inu DAO. SHIB is now just 17% away from a key resistance level, which, if surpassed, could propel the meme coin into a full-blown bull run.
Network Growth Hints Shiba Inu Price Increase
The Shiba Inu network, Shibarium, is currently the main contributor and influencer of the SHIB price action. The developers have been working hard to make new products to trap investors and potentially catch more. The latest in the Shibarium development is the plan to launch a Shiba Inu decentralized autonomous organization (DAO).
https://t.co/mj7SRzf6yi
— 𝐋𝐔𝐂𝐈𝐄 (@LucieSHIB) August 24, 2024
The SHIB DAO, announced by the Shiba Inu marketing lead, Lucie, on August 24, aims to further empower its community by democratizing governance processes.
Meanwhile, Shibarium network account growth hit a new all-time high of 118,470 on August 25, signaling that more users are joining the network.
Accounts growth (Blockscout chart)
Further, data from Santiment shows that SHIB daily active addresses and volume have risen gradually since August 14. This suggests increased network usage, which aligns with the Shiba Inu price, which has increased by 8% in the same duration.
Additionally, futures traders are betting on the price of SHIB to rise, as Coinglass data shows there were more cumulative Long Liquidation Leverages than shorts in the last 24 hours. This imbalance suggests that traders are anticipating the SHIB price to rise.
A deeper analysis of the SHIB open interest (OI) and price changes over the last 24 hours shows that traders are closing their long positions, possibly because they anticipate further retrace in the short term.
What is Happening on the SHIB Front?
The divergence between network growth and futures traders’ sentiment has placed Shiba Inu in a challenging position. Although bullish sentiment is stronger, the volatile nature of the crypto market means things could change quickly.
SHIB price has retraced 8% since Saturday but is nearing a strong support zone where, given the positive network growth, it could bounce back and rise higher.
The $0.00001451 level offers robust support, having previously held the price down for over 20 days.
Can Shiba Inu Price Reach $0.00001750?
Overall, Shiba Inu price prediction is in a short-term bullish phase inside a broader bearish trend. However, if bulls prevail, this short-term rally can turn into a complete trend reversal. However, if the Bears win, SHIB may drop back to August 5 lows.
The post Shiba Inu Price Eyes 17% Spike Amid Rising Network Activity appeared first on CoinGape.
