Shiba Inu (SHIB) price is currently trading at $0.000089 area after spending the past week trailing behind Dogecoin.
The latest on-chain data trends show that the Shiba Inu network has witnessed an unusually high number of transactions from new users this week, suggesting an influx of fresh capital.
From a technical analysis perspective, the SHIB token price has broken above the 50-day Moving Average, suggesting a strong inclination for another leg-up.
Shiba Inu (SHIB) price looks set to break above $0.000009 after playing second-fiddle to Dogecoin for the better part of November. On-chain analysis explores how the recent spike in “new user transactions” could drive SHIB price into a major price rally.
Shiba Inu is Attracting an Unusually High Number of Transactions From New Users
Shiba Inu price played second-fiddle to Dogecoin (DOGE) for the better part of November 2023 However, recent on-chain data trends show that investors have started pilling fresh capital into SHIB markets.
This week, SHIB token has attracted an unusually high number of transactions from new investors. Indicatively, Shiba Inu “New Adoption Rate” recently reached a 4-month peak of 40% on December 4 according to on-chain data analytics platform, IntoTheBlock.
Notably the latest reading of 34.44% is still well above the 30-day average of 23.41%. This signals that DOGE is still currently attracting an usually high number of new joiners despite high prices..
Shiba Inu (SHIB) New Adoption Rate vs. Price. Source: IntoTheBlock
The New Adoption Rate metric measures the percentage of total active addresses that conducted their first transaction on a given day. This provides clear insights into the rate at which crypto investors are bringing new money into the SHIB markets.
When new user adoption increases during a price rally, it means that a significant number of new investors are FOMO-ing in. If this thesis holds, SHIB holders can anticipate a significant leg up in the days ahead.
SHIB Price Forecast: Possible Breakout toward $0.00001
The influx of new capital looks set to intensify the Shiba Inu bullish momentum in the days ahead. From a technical analysis perspective, the SHIB token price has broken above the 50-day Moving Average price of $0.000008. This further affirms a strong inclination for another SHIB price leg-up.
If the bulls capitalize on the positive market sentiment as predicted, SHIB price will likely reclaim the $0.00001 territory.
But on the downside, the bears could negate that prediction if Shiba Inu price reverses below the $0.00007 area. However, as depicted in the chart above, the 200-day moving average of $0.0000079 could form a major support level.
Ibrahim Ajibade Ademolawa is a seasoned research analyst with a background in Commercial Banking and Web3 startups, specializing in DeFi and TradFi analysis. He holds a B.A. in Economics and is pursuing an MSc in Blockchain.