Shiba Inu (SHIB) price is up 5% since dropping to a one-month low of $0.0000084 on May 24. On-chain data reveals that SHIB holders have begun moving tokens off exchanges. Will this supply crisis lead to higher prices in the coming days?
Stakeholders anticipate that this will accelerate global Shiba Inu adoption while encouraging self-incubation among SHIB holders. Current on-chain data trends seem to support these claims. Will this affect the price of SHIB positively in the coming days?
SHIB holders transfer coins from exchanges
It appears that Shiba Inu (SHIB) investors have begun rehearsal for the upcoming cold wallet launch. On-chain data shows that SHIB holders have increasingly moved their tokens off exchanges in recent weeks.
Specifically, the chart below shows how the SHIB totals stock exchange balance It decreased by 92 billion tokens between May 16th and May 29th.
Usually, when the balance on the stock exchanges drops dramatically, albeit temporarily, it causes relative scarcity in all markets. This relative scarcity often drives up prices.
Interestingly, Shiba Inu will be shipping their newly launched original cold wallet on May 29th. If it is received as well as expected, more SHIB holders can move their tokens to the self-holding.
Ultimately, the resulting decline in market supply could lead to more price gains for SHIB in the coming days.
Users flock to the Shiba Inu network
Moreover, the Shiba Inu network has seen a significant increase in network traction in recent weeks. This adds some credibility to the bullish SHIB price outlook.
Notably, the Shiba Inu active addresses (7d) Since May 20th specifically, between May 20th and May 29th, it increased by 25% from 16,305 to 20,442 active users.
The Active Addresses metric (7D) summarizes the number of unique wallet addresses interacting on the network over a seven-day period. As we saw above, the continued rise indicates an increase in demand for network services and underlying native token.
In conclusion, if tokens continue to fly away from the exchanges and network participants continue down this path, SHIB may enter another bullish rally.
SHIB Price Prediction: All eyes are on $0.000012
Given the current positive market sentiment, SHIB stock is likely to reach $0.000011 in the coming weeks. But according to IntoTheBlock’s Exchange On-chain Market Depth, SHIB must measure the $0.0000095 resistance before stockholders can be confident of a bullish price prediction.
In that area, 46,800 investors who bought 29.1 trillion chip at an average price of $0.000009 could stop the rally.
But if the positive SHIB price forecast is executed, the price is likely to rise towards $0.000011.
However, the downtrend could return if Shiba Inu price breaks below the $0.0000085 support area. But the buying wall erected by 43,500 investors who bought 7.03 trillion chip at an average of $0.000008 is likely to prevent the decline.
Although it is unlikely, a decline of $0.0000085 may invalidate the bullish prediction for SHIB price and lead to a decline towards $0.0000075.
In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.