The Shiba Inu (SHIB) price is up 5% since dropping to a one-month low of $0.00000084 on May 24. On-chain data shows that SHIB holders are starting to move tokens out of exchanges. pandemic. Will this supply crunch trigger a bull run in the coming days?
On May 29, Shiba Inu (SHIB) will launch its much-anticipated cold wallet product, developed in collaboration with Tangem – a Swiss-based blockchain company.
Stakeholders anticipate that the event will accelerate the global adoption of Shiba Inu while encouraging self-regulation among SHIB holders. Current on-chain data trends seem to support these hypotheses. Will this have a positive impact on the SHIB price in the coming days?
HOLDER SHIB IS TRANSFERING COINS FROM THE EXCHANGE
Shiba Inu Investors (SHIB) have started new moves in preparation for the upcoming cold wallet launch. On-chain data indicates that many SHIB holders are moving their tokens off exchanges in recent weeks.
Specifically, the chart below illustrates the total SHIB balance on exchanges that has dropped by 92 billion tokens between May 16 and May 29.
Shiba Inu (SHIB) Price Prediction, May 2023 – Balance on exchanges. Source: Glassnode
Usually, when balances on exchanges drop significantly, even if only temporarily, there is also a relative scarcity in the markets. This relative scarcity often triggers a bull run.
Interestingly, Shiba Inu will launch a new cold wallet on May 29. If the product is well received as anticipated, many other SHIB holders can move their tokens into self-regulatory mode.
Finally, a decrease in market supply may cause SHIB to increase sharply in the coming days.
USERS are flocking to the SHIBA INU NETWORK
Furthermore, the Shiba Inu network has seen a significant increase in network users in recent weeks. This increases the credibility of bullish SHIB price predictions.
Notably, the active address of Shiba Inu (7 days) has increased sharply since May 20. Specifically, from May 20 to May 29, the number of active addresses increased by 25%, from 16,305 to 20,442 users.
Shiba Inu (SHIB) Price Prediction, May 2023 – Active address. Source: Santiment.
The active address metric (7 days) aggregates the number of unique wallet addresses that interacted on the network over a one-week period. As seen above, the continued increase indicates a growing demand for network services and the native token, SHIB.
In conclusion, if tokens continue to be moved out of exchanges and the number of network participants continues to follow this trajectory, then SHIB could enter another bull run.
SHIB PRICE FORECAST: EVERYONE’S ATTENTION IS ON $0.000012
Considering the current positive market sentiment, SHIB is likely to hit $0.000011 in the coming weeks. However, according to IntoTheBlock’s Market Depth data, SHIB must break through the $0.00000095 resistance level before holders can trust the bullish price prediction.
This is where 46,800 investors bought 29.1 trillion SHIB at an average price of 0.000009 USD, which was able to halt the upward momentum.
But if SHIB can break through this resistance, the price will rally to $0.000011.
Shiba Inu (SHIB) Price Forecast – May 2023. GIOM data. Source: IntoTheBlock
However, the downtrend could return if Shiba Inu price drops below the $0.00000085 support area. Even so, a buy wall built by 43,500 investors who bought 7.03 trillion SHIB at an average of 0.000008 USD should be able to stop the plunge.
While unlikely, a drop to $0.00000085 could invalidate bullish predictions and trigger a downtrend towards $0.00000075.