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 are starting to move tokens off exchanges. Will this supply crunch trigger a price rally in the coming days?
On May 29, Shiba Inu (SHIB) will launch the much-anticipated native cold wallet, developed in collaboration with Tangem, a Switzerland-based blockchain firm.
Stakeholders anticipate that this would accelerate Shiba Inu’s global adoption while encouraging self-custody among SHIB holders. The current on-chain data trends appear to support these claims. Would this impact SHIB’s price positively in the coming days?
SHIB Holders Are Moving Coins off Exchanges
Shiba Inu (SHIB) investors appear to have started a dress rehearsal for the upcoming cold wallet launch. On-chain data shows that SHIB holders have been increasingly moving their tokens off exchanges in recent weeks.
Specifically, the chart below illustrates how the total SHIB Balance on Exchanges has reduced by 92 billion tokens between May 16 and May 29.
Typically, when the Balance on Exchanges declines considerably, albeit temporarily, it causes a relative scarcity across the markets. This relative scarcity often triggers a price surge.
Interestingly, Shiba Inu will ship its newly-launched native cold wallet on May 29. If it is well-received as anticipated, more SHIB holders could move their tokens into self-custody.
Ultimately, the resulting drop in market supply could trigger more price gains for SHIB in the coming days.
Users are Flocking to the Shiba Inu Network
Furthermore, the Shiba Inu network has witnessed a considerable increase in network traction in recent weeks. This adds some credence to the bullish SHIB price predictions.
Notably, the Shiba Inu Active Addresses (7d) have been increasing since May 20. Specifically, between May 20 and May 29, it increased by 25% from 16,305 to 20,442 active users.
The Active Addresses (7D) metric sums up the number of unique wallet addresses interacting on a network over a seven-day period. As seen above, a persistent rise signifies increased demand for network services and the underlying native token.
In conclusion, if tokens keep flying off exchanges and network participants continue on this trajectory, SHIB could enter another bull rally.
SHIB Price Prediction: All Eyes on $0.000012
Considering the current positive market sentiment, SHIB is likely to reach $0.000011 in the coming weeks. But, according to IntoTheBlock’s Exchange On-chain Market Depth, SHIB must scale the $0.0000095 resistance before holders can be confident of the bullish price prediction.
At that zone, 46,800 investors that purchased 29.1 trillion SHIB at an average price of $0.000009 could halt the rally.
But if the positive SHIB price prediction plays out, the price will likely rally toward $0.000011.
Still, the bearish trend could return if Shiba Inu price drops below the $0.0000085 support zone. But the buy-wall mounted by 43,500 investors that bought 7.03 trillion SHIB at the average of $0.000008 will likely prevent the drop.
Although unlikely, a drop of $0.0000085 could invalidate the bullish SHIB price prediction and trigger a downswing toward $0.0000075.
Disclaimer
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