Shiba Inu’s (SHIB) price has gained 13% over the past month. On-chain data reveals that Shiba Inu has a fair chance to enter a price rally following the recent token burn event, which triggered a boost in Network Activity.
Shiba Inu announced another 600 million SHIB token burn via Twitter on Tuesday, July 11. On-chain data reveals that both retail market participants and whale investors had taken bullish positions in anticipation of the burn event.
Shiba Inu Network Activity Is on the Rise
Shiba Inu network usage has been on the rise over the past week. This suggests that retail investors had increased trading activity in anticipation of the recent token burn event.
The Santiment chart below illustrates how SHIB Daily Active Adressesses increased from 5,009 to 7,401 between July 5 and July 10.
Daily Active Addresses measures the activity level among retail network participants by summing up the daily number of wallet addresses that carry out transactions.
When it rises significantly within a short period, as observed above, it signifies that the underlying SHIB token is in demand.
This optimistic projection is further confirmed by the bullish sentiment growing among Shiba Inu whales.
Whales Investors Grow Bullish on SHIBA INU’s Next Move
Furthermore, recent on-chain SHIB transaction data also shows growing optimism among whale investors.
IntoTheBlock’s data below shows only 26 SHIB Whale Transactions on July 6. But at the close of July 10, it had increased to 38 Whale Transactions.
The Large Transactions metric adds up the daily number of transactions exceeding $100,000 to evaluate the general trading sentiment among whale investors.
In summary, the charts above suggest that both Shiba Inu retail traders and large institutional investors had taken bullish positions ahead of the token burn.
If they maintain the positive disposition, SHIB could continue to add to its 13% monthly gains.
SHIB Price Prediction: The $0.0000085 Resistance Could Finally Give Way
SHIB price could finally break above $0.0000085 if the latest 600 million token burn event sparks a bullish momentum. However, according to IntoTheBlock’s Break-Even Price distribution data, the $0.000008 resistance could pose a challenge.
Currently, 43,730 investors have bought a total of 9.5 trillion SHIB tokens at the minimum price of $0.000007. They could trigger a pullback if they exit their positions when they break even.
But if they hold firm as predicted, then the Shiba Inu price could breakout toward $0.000010
Still, the Shiba Inu bears can overturn this bullish narrative if SHIB drops $0.000006. But as seen above, some of the 584,100 addresses holding 17.7 trillion SHIB tokens at the average price of $0.000007 could trigger a recovery.
But if the bears push the support level aside, then Shiba Inu price could drop toward $0.000006.
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