SHIB Active Wallets Soar 28%, But Why Is SHIB’s Price Lagging?

Shiba Inu stumbles upon a hefty resistance wall on the way up: on-chain data unfolds key reasons.

Shiba Inu personal trainer is shouting at him to get a move on the treadmill.
Created by Kornelija Poderskytė from DailyCoin
  • Newly-registered SHIB wallets grow along with Shibarium members.
  • Shiba Inu bumps into a massive resistance wall with 1.35T tokens.
  • SHIB’s Open Interest (OI) rate rises with a 1.77 long-to-short ratio.

The ever-growing community of Shiba Inu custodians has expanded by nearly 5% since last week, as the broader crypto markets enjoyed a relief rally led by Bitcoin’s run to claim a new yearly high at $49,872. However, SHIB has yet to catch up to the festivities, with a slight increase of 3% over the last seven days, despite BTC gradually approaching $50K.

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Meanwhile, the Shiba Inu community continues to grow with a 4.76% increase in new registered wallets. Active addresses spiked by 28.36% during the same time frame, according to the seven-day on-chain data by IntoTheBlock.

Percentage increase of new registered SHIB wallets.

This raises the natural question of why Shiba Inu’s $0.00001 price range has been on hiatus since January 11, 2024. Despite the exponential growth in new addresses, the on-chain metrics also show a 79.25% hike in crypto addresses with no holdings.

Can SHIB Surmount the 1.35T SHIB Resistance Wall?

While Shiba Inu’s Layer-2 blockchain, Shibarium, expands DeFi adoption with the latest integration into Frontier Wallet, the multiple milestones heavily contributed towards its userbase soaring from 29K three months ago to 63K today, according to ShibariumScan.io.

On-chain data also suggests that SHIB faces a hefty resistance wall, with 1.35 trillion canine tokens bought around this area. As 34% of current SHIB custodians are making a profit, going up from $0.000009 to $0.00001 looks like a bumpy road with many investors attempting to break even.

SHIB is exchanging hands at $0.000009457, according to independent cryptocurrency price aggregator CoinGecko. As SHIB’s total holder count enlarges, SHIB remains trendy in Derivatives trading. SHIB Garnered over $33M in 24 hours with a 37% rise in Derivatives trading volume. Crypto traders are contributing towards a gradual Open Interest (OI) rate hike for SHIB, according to CoinGlass on-chain data.

On the Flipside

  • The stagnant SHIB price movement is partly due to a decreasing price correlation with Bitcoin (BTC), which was at 0.44 at publication.
  • Shiba Inu’s (SHIB) Relative Strength Index (RSI) highlights an overbought condition, with the scales pointing to 73.

Why This Matters

The observations from on-chain metrics provide valuable insights into Shiba Inu’s price movement and the native Layer-2’s growth.

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Tadas Klimasevskis

Tadas Klimaševskis is a Lithuanian journalist at DailyCoin, specializing in covering the lighter side of the crypto industry such as memecoins and pop culture in the metaverse. He has experience as a music artist, English language teacher, and freelance writer, and uses his creative writing skills to summarize valuable information in his work. He is also a strong believer in the potential of blockchain and spends his free time listening to music, traveling, and watching basketball games.