Shiba Inu (SHIB) is gaining momentum, with increased activity on its Shibarium network and new developments like the SHIB DAO fueling optimism among investors. After a 13% surge to $0.00001614 on August 23, following a breakout from a consolidation phase, the price has slightly retraced. However, with growing investor confidence driven by heightened network usage and volume, SHIB is now only 17% away from a key resistance level. Surpassing this level could potentially trigger a significant bull run for the popular meme coin.
Network Growth Signals Potential Shiba Inu Price Increase
The Shibarium network has become a crucial driver of SHIB's price action. Developers are actively working on new products to attract and retain investors. One of the latest developments is the planned launch of a Shiba Inu Decentralized Autonomous Organization (DAO), as announced by Shiba Inu's marketing lead, Lucie, on August 24. The SHIB DAO aims to further empower the community by democratizing governance processes within the ecosystem.
In tandem with these developments, Shibarium network activity has reached new highs. On August 25, the network recorded an all-time high of 118,470 accounts, indicating a surge in user adoption. Data from Santiment also shows a steady increase in SHIB’s daily active addresses and trading volume since August 14, which aligns with an 8% price increase over the same period.
Additionally, futures traders are showing confidence in SHIB's potential rise. According to data from Coinglass, there has been a greater number of long liquidation leverages compared to shorts in the past 24 hours, suggesting that traders are betting on SHIB's price to continue climbing. However, a closer look at open interest (OI) and price changes over the last day reveals that some traders are closing their long positions, possibly in anticipation of a short-term retracement.
Current Challenges for Shiba Inu
The disparity between network growth and the sentiment among futures traders has placed Shiba Inu in a delicate situation. While the overall sentiment remains bullish, the inherently volatile nature of the cryptocurrency market means that conditions could shift rapidly.
Since Saturday, SHIB has retraced by 8% but is approaching a strong support zone, where positive network growth could help the price rebound and move higher. The $0.00001451 level, which has previously acted as significant resistance, now serves as robust support.
Can Shiba Inu Reach $0.00001750?
Shiba Inu’s price prediction remains cautiously optimistic, with the coin in a short-term bullish phase within a broader bearish trend. If the bulls can maintain their momentum, this rally could evolve into a full-blown trend reversal. However, if bearish forces take over, SHIB may retreat to its August 5 lows.
In conclusion, the coming days will be crucial for Shiba Inu as it tests key resistance and support levels. The outcome will depend on whether the positive network developments can sustain investor confidence and propel SHIB toward its next target of $0.00001750.
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