Shiba Inu [SHIB] has experienced significant network growth, sparking discussion about its impact on the token’s price movement.
Metrics like daily active addresses, transaction volume, and price change paint a compelling picture, so what does the recent activity mean for SHIB?
Explosive growth and active participation in the network
Analysis shows a significant increase in the number of new wallet addresses for Shiba Inu. Data shows that the network recorded more than 7,600 new addresses, indicating a large influx of new participants.
This growth is often associated with increased speculative interest or wider adoption, both of which can be catalysts for higher prices.
A similar trend is seen when comparing the daily active addresses chart, which surged to over 18,000 during the same period, one of SHIB’s highest activity levels this year.
The combination of these indicators suggests that not only are new users entering the ecosystem, but existing holders are also increasingly participating in transactions.
This coordination between network growth and active addresses is critical. Historically, this synergy has preceded strong price increases, reflecting growing utility and confidence in the asset.
However, the sharp decline in network growth after the surge has raised questions about whether the momentum is sustainable or just a short-term reaction to market events.
Shiba Inu trading volume reflects mixed sentiment
The volume chart provides further context. At the peak of network growth and daily activity, Shiba Inu saw over $857 million in volume, highlighting the huge trading interest.
However, the current drop to $176.94 million suggests that enthusiasm is cooling, which could signal profit-taking or market consolidation.
While high volumes during peak periods indicate rising demand, the sustainability of these levels is critical.
If transaction volumes continue to decline as the network grows, SHIB may struggle to maintain its recent bullish momentum.
Can SHIB continue to rise?
Analysis from AMBCrypto shows that Shiba Inu recently rallied to test resistance at $0.00002937, recovering sharply from earlier lows.
The formation of a golden cross, where the 50-day moving average crosses over the 200-day moving average, is a bullish sign. However, the RSI is at 66.44, suggesting that the coin is approaching the overbought region.
For SHIB to sustain gains, it must maintain its position above the critical support at $0.000029.
Additionally, renewed network growth and a surge in transaction volume will bolster confidence in further price gains. Without these, the coin could enter a consolidation phase or a pullback.