Shiba Inu (SHIB) price is down 15% this month. Recently, on-chain data revealed some mild-bullish signals. Can the rising demand garner enough momentum to trigger the much-anticipated SHIB price rebound toward $0.000010?
Shiba Inu’s (SHIB) negative performance in May 2023 has been exacerbated by the rise of newly-emerged memecoins and the 9% contraction in the global crypto markets.
Nevertheless, the Shiba Inu team has introduced new products and community campaigns. Going by the on-chain data, some of these products are now spurring activity across the Shiba Inu ecosystem.
What are the chances that the recent spike in network activity will evolve into a steady demand for SHIB in the coming days?
Shiba Inu Network Growth is On the Rise
Despite the recent SHIB price downtrend, new users have been flocking to the Shiba Inu ecosystem this week.
The chart below shows how Shiba Inu Network Growth has surged 34% from 877 on May 21 to 1,180 on May 24.
The Network Growth evaluates the user acquisition rate by summing up all the new SHIB wallet addresses created daily.
As seen above, the SHIB Network Growth has been on the rise since Monday. Bullish stakeholders could attribute this to the newly-announced Shiba Inu cold wallet.
Going by the initial response by the community and glowing media headlines, the product launch, slated for May 29, is set to deepen SHIB adoption rates globally.
Investors Could Soon Stop Selling
The Market Value to Realized Value (MVRV) data shows that most Shiba investors are now sitting on sizeable unrealized losses.
The MVRV ratio evaluates the net-financial position of investors by comparing their purchase prices to current SHIB market prices.
The Santiment chart below shows that, with prices at $0.0000085, investors that bought SHIB in the past month are holding nearly 4% unrealized losses.
With a net-loss position of 4%, Shiba Inu investors may be unwilling to sell. If they indeed stop selling as they desperately look to keep their losses below 5%, they could inadvertently trigger a SHIB price rebound.
In summary, Shiba Inu Network Growth indicates rising demand. Likewise, the current MVRV ratio suggests that the selling pressure may soon slow down.
Combining both factors could lead investors to make bullish SHIB price predictions in the coming days.
SHIB Price Prediction: The Bulls Can Target $0.000010
If SHIB builds up a bullish momentum as expected, it will face minimal resistance until it reaches $0.000009.
However, at that zone, sell pressure from 19,600 investors that bought 3.82 trillion SHIB at the average price of $0.000009 could trigger a pullback.
If Shiba Inu bulls can manage to breach that resistance, SHIB could rally as high as $0.000010 eventually.
Conversely, the bears could invalidate the bullish SHIB price prediction if its current downtrend reaches $0.000008.
But the potential buy-wall mounted by 28,690 investors that 9.6 trillion SHIB at an average price of $0.000008 could prevent the drop.
Although unlikely, Shiba Inu could slide toward $0.000007 if that support level does not hold.
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.