In 2021, Shiba Coin made a significant breakthrough but recently faced its first encounter with bear markets, suffering a substantial price hit. Nevertheless, efforts in product development continued during the unfavorable market conditions. Their latest strides could potentially affect the coin supply on exchanges, possibly driving Shiba Coin’s price upwards. So, what’s next for Shiba Coin investors?
Shiba Coin Wallet
The price of Shiba Inu (SHIB) rose approximately 5% after hitting a month low of $0.0000084 on May 24. According to on-chain data, SHIB investors have started withdrawing their tokens from exchanges. This supply constraint could trigger a price rally in the coming days. Fewer Shiba Coins on the exchanges would also ease selling pressure.
In the forthcoming hours, Shiba Inu (SHIB) will launch a highly-anticipated local cold wallet developed in collaboration with Tangem, a Swiss-based blockchain firm. Stakeholders argue that this will accelerate Shiba Inu’s global adoption and increase the use of decentralized wallets among SHIB owners.
Shiba Coin Price Commentary
Shiba Inu (SHIB) investors are transferring their assets from exchanges in preparation for the impending cold wallet launch. We see a decrease of 92 billion in the total SHIB balance on exchanges between May 16 and May 29. Typically, when the Exchange Balance significantly reduces, even temporarily, it results in relative scarcity in the markets. This relative scarcity usually triggers a price increase.
So, what are other on-chain data telling us? The Active Addresses (7D) metric summarizes the number of unique wallet addresses interacting on a network over a seven-day period. Here, we also observe a consistent increase, indicating that interest in ecosystem products and services continues to rise. Benefit production and price move in direct proportion.
If the supply on exchanges continues to decrease and network participants stay on this trajectory, SHIB could enter another bull rally. The potential scenario points to a visit to the $0.000011 peak in the coming days. However, first, the $0.0000095 resistance needs to be overcome convincingly.
A general market downturn would not be surprising these days, given the dense macroeconomic agenda of the week. In this scenario, if Shiba Coin investors turn to selling, the $0.0000085 support will be of critical importance. Closures below this could result in double-digit losses.
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