SHIB’s price rises further, but will the bull rally last?

• Shiba Inu’s price surged over the last week, with new addresses showing interest.
• Shibarium, Shiba Inu’s L2 solution, failed to garner attention.

Shiba Inu [SHIB] has been one of the most prominent meme coins in the sector for quite some time. Due to the recent resurgence of interest in these tokens, the price of SHIB has surged.

What’s next for SHIB?

Over the last week, the price of SHIB surged by 18.90% and its volume also grew by 41.97% during this period. At press time, SHIB was trading at $0.00003017.

Despite the recent surge in price, SHIB had a long way to go.  The price of SHIB still hadn’t reached the levels it had attained on the 5th of March.

If SHIB continues to test the $0.00003184 levels, it could possibly break past this resistance and start its journey towards the $0.00004531 level.

However, after testing the $0.00004531 level, a correction could be expected.

However, it may take some time before SHIB sees a massive shift in terms of price movement.

The CMF (Chaikin Money Flow) had declined to -0.01, indicating that money flowing into SHIB had declined and there was more neutral price movement expected.

Moreover, the RSI (Relative Strength Index) had also fallen, suggesting that SHIB was slowly moving away from the overbought territory.

Some sideways movement between the $0.00002365 and $0.00003184 levels can be expected before any significant price fluctuation occurs.

More data

Even though technical indicators suggested sideways movement, on-chain metrics painted a more bullish picture.

According to AMBCrypto’s analysis of Santiment’s data, Network Growth for SHIB had surged significantly. This indicated that the new addresses were showing interest in SHIB.

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A surge in interest from new addresses may play a key role in the bullish momentum for SHIB’s price.

The velocity of SHIB on the other hand remained stagnant, indicating that the overall frequency at which SHIB was trading at had remained stagnant.

Source: Santiment

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Some challenges ahead

Coupled with declining velocity, the underperformance of Shiba Inu’s ecosystem can also impact SHIB negatively.

Read Shiba Inu’s [SHIB] Price Prediction 2024-25

Shibarium, a Layer 2 network on the Shiba Inu network, witnessed a massive decline in terms of transactions over the last week.

Even though SHIB may see short term positive price movement, a declining interest in its ecosystem can harm its long term prospects.

Source: Shibarium