Will Shiba Inu surpass DOGE and PEPE as it experiences an impressive surge in new users?
Shiba Inu, the popular memecoin, has been making waves in the cryptocurrency market in 2024. After a series of market liquidations on January 3rd, SHIB has managed to recover by 25.4%, surpassing its rivals PEPE and Dogecoin (DOGE), which have only seen gains of 22.1% and 5.6% respectively.
Looking at the price charts, it is evident that Shiba Inu has outperformed DOGE and PEPE in the past week. However, analyzing on-chain data reveals an interesting trend that suggests this outperformance may continue in the coming days.
Recent on-chain data indicates that Shiba Inu is attracting a significantly high number of new user transactions. IntoTheBlock’s new adoption rate metric measures the percentage of total active addresses that conducted their first transaction on a specific day. This metric provides valuable insights into the rate at which new investors are entering the SHIB market.
On January 10th, Shiba Inu recorded a new adoption rate of 42.75%, as shown in the chart below. This figure is notably higher than the 30-day average of 39.1%, indicating a surge in new user activity.
When the adoption rate increases, it suggests that there is a strong demand for the token. It indicates that new users are not only joining the network but also actively participating in transactions. If this trend continues, it could potentially lead to a further increase in SHIB price in the near future.
Based on the data points mentioned above, it is predicted that the rising number of new user transactions could drive SHIB price towards $0.000013 in the coming days. However, there is a significant hurdle at the $0.000012 mark, as historical accumulation trends suggest that a large number of SHIB holders acquired the token at this price. If these investors decide to take profits, it could result in a price retracement.
On the other hand, if new users continue to bring in fresh capital, the Shiba Inu bulls may be able to break above the $0.000013 level, as predicted.
However, there is also a possibility of a major downward movement if the bears force a reversal below $0.00008. In this scenario, the chart indicates that a significant number of SHIB holders acquired the token at an average price of $0.000009. To prevent losses, these investors may engage in short-covering purchases, which could inadvertently trigger a rebound.
In conclusion, Shiba Inu’s on-chain data suggests that the memecoin is experiencing a surge in new user transactions, which could have a positive impact on its price in the near future. However, there are potential obstacles to overcome, and market movements can be unpredictable. Therefore, investors should closely monitor the market and make informed decisions based on the available data.
