Reminiscent of the volatility of the broader memecoin market, Shiba Inu (SHIB) maintained neutral price action in July 2023. However, the rate at which Shiba Inu is attracting new users indicates an imminent SHIB price breakout.
The Shiba Inu price has seen mixed fortunes in recent weeks. However, a series of new product development seems to have begun to yield visible results. Can the bulls take advantage of the SHIB price breakout stimulus?
An increasing number of new users are joining the Shiba Inu Ecosystem
From the launch of the SHIB cold wallet to the proposed Shibarium upgrade, the Shiba Inu community is growing at an unprecedented rate. On-chain data shows that since the massive decline in the first quarter, SHIB network growth It started to climb again at the end of May 2023.
Apparently at a recent low on May 22, the Shiba Inu ecosystem attracted 972 new joiners. But since then, the number has gradually risen, reaching a local high of 4,007 on June 27. This represents a 312% growth in the new user acquisition rate.
network growth It measures the new user acquisition rate by summarizing the daily number of wallet addresses created on a given blockchain network.
At the end of July 6, SHIB users had registered 3,441 new wallet addresses. This indicates that the Shiba Inu ecosystem is preparing to maintain high reticulum growth in July.
While SHIB’s price action has not yet matched the growth of the network, historical data suggests that it is only a matter of time.
New users don’t hibernate
In further confirmation of the bullish outlook, SHIB user activity has also picked up recently. As the chart below shows, active SHIB addresses have been on an upward trend for the past two weeks.
Between June 23rd and July 7th, SHIB Bank witnessed a 27% increase in the number of users carrying out their daily transactions. On June 23, the Shiba Inu recorded 27,432 active addresses, which jumped to 32,208 by the end of July 6.
The graph above shows a clear progression in the level of user activity logged across the Shiba Inu memecoin ecosystem. It indicates that a large number of new users who joined the network were actively executing transactions on a daily basis.
If this trend continues, the surge in demand could soon lead to a breakout of the SHIB price.
SHIB Price Prediction: The bulls could cause a breakout towards $0.000010
The indicators on the chain above indicate that demand for SHIB is on the rise. This could lead to a possible rally towards $0.000009. However, the sell wall at $0.000008 remains a major hurdle.
As shown below, 91,460 investors who bought 32 trillion chip at an average price of $0.000008 could slow the rally.
However, if higher demand pushes SHIB above this resistance level, an upside rally could reach the $0.000010 target.
Conversely, the SHIB price breakout prediction could be invalidated by bears if it drops below $0.0000070. In this range, 37,760 investors who bought 30.3 trillion SHIB tokens at an average price of $0.000007 could provide bullish support.
But if this support level cannot hold, Shib Inu is likely to drop towards $0.000006.
Disclaimer
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 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.
