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Reminiscent of the broader memecoin market swings, Shiba Inu (SHIB) maintained a neutral price action in July 2023. However, the rate at which Shiba Inu is attracting new users suggests an impending SHIB price breakout.
Shiba Inu price has experienced mixed fortunes in recent weeks. However, a series of new product development appears to have started yielding visible results. Can the bulls capitalize to trigger a SHIB price breakout?
An Increasing Number of New Users are Joining Shiba Inu Ecosystem
From the SHIB cold wallet launch to the proposed Shibarium upgrade, the Shiba Inu community has been growing at an unprecedented rate. On-chain data shows that since following a massive decline in Q1, SHIB Network Growth began to rise again toward the end of May 2023.
Evidently, at the recent low on May 22, the Shiba Inu ecosystem attracted 972 new joiners. But since then, the figure has gradually increased to reach a local top of 4,007 on June 27. This represents a 312% growth in the new user acquisition rate.
Network Growth measures the new-user acquisition rate by summing up the daily number of wallet addresses created on a particular blockchain network.
At the close of July 6, SHIB users registered another 3,441 new wallet addresses. This shows that the Shiba Inu ecosystem is poised to maintain a high Network Growth in July.
While the SHIB price action has not yet matched the Network Growth, historical data suggests that it’s only a matter of time.
The New Users Are Not Sitting Dormant
In further confirmation of the bullish projection, SHIB user activity has also been rising recently. As the chart below illustrates, SHIB Active Addresses have been on an uptrend over the past two weeks.
Between June 23 and July 7, SHIB witnessed a 27% increase in daily users carrying out transactions. On June 23, Shiba Inu recorded 27,432 Active Addresses, which had surged to 32,208 by the close of July 6.
The chart above shows a visible progression in the level of user activity recorded across the Shiba Inu memecoin ecosystem. It suggests that a large number of new users joining the network have been actively carrying out transactions on a daily basis.
If this trend continues, a surge in demand could soon trigger a SHIB price breakout.
SHIB Price Prediction: The Bulls Could Trigger a Breakout Toward $0.000010
The on-chain indicators above signal that the demand for SHIB is rising. This could fuel a potential bull rally toward $0.000009. However, the sell-wall of $0.000008 remains a major obstacle.
As shown below, the 91,460 investors that bought 32 trillion SHIB at the average price of $0.000008 could slow the rally.
However, if the rising demand powers SHIB above that resistance level, the bull rally could reach the $0.000010 target.
Conversely, the bears could invalidate the SHIB price breakout prediction if it drops below $0.0000070. In that range, 37,760 investors that bought 30.3 trillion SHIB tokens at an average price of $0.000007 could offer bullish support.
But if that support level cannot hold, then Shib Inu will likely decline toward $0.000006.
Disclaimer
In line with the 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, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.
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