Shiba Inu’s (SHIB) Price: Network Soars Then Dips in December

TLDR

• Shiba Inu recorded over 7,600 new wallet addresses in recent surge
• Daily active addresses peaked at 18,000, marking yearly high
• Transaction volume reached $857 million during peak but dropped to $176.94 million
• SHIB tested resistance at $0.00002937 with RSI at 66.44
• Network growth showed sharp decline after initial spike

Shiba Inu’s network has experienced a remarkable surge in activity during early December 2024, marked by a wave of new wallet creations and increased transaction volumes, followed by a sharp decline in network metrics.

Data from blockchain analytics platform Santiment reveals that Shiba Inu (SHIB) recorded more than 7,600 new wallet addresses during the peak of the surge. This influx represents one of the highest rates of new address creation for the network in 2024.

Network growth is high amongst several altcoins right now. Notably, keep an eye on XRP Ledger, Shiba Inu, and Band. On Sunday alone, we saw…

XRP: 22,357 New Wallets
SHIB: 7,548 New Wallets
BAND: 35 New Wallets

All of these network growth spikes, relatively much… pic.twitter.com/3i1ZHV3Dvp

— Santiment (@santimentfeed) December 2, 2024

The surge extended beyond new wallets, with daily active addresses climbing to over 18,000 during the same period. This metric indicates that both new and existing users were actively engaging with the network during this time frame.

Transaction volume data provides additional context to the network’s activity spike. During the peak period, SHIB’s transaction volume exceeded $857 million, demonstrating strong trading interest across the network. However, this figure has since declined to $176.94 million, suggesting a cooling of market activity.

Price action during this period showed SHIB testing resistance at $0.00002937, marking a recovery from previous lower levels. Technical indicators revealed the formation of a golden cross, with the 50-day moving average moving above the 200-day moving average.

The Relative Strength Index (RSI) reached 66.44 during this period, approaching but not quite reaching overbought territory, which typically begins at 70. This technical indicator suggests strong buying pressure without entering extreme levels.

Looking at the network growth chart, the spike in new addresses was followed by a pronounced decline, raising questions about the sustainability of the recent growth phase. This pattern often indicates a short-term surge in interest rather than sustained network expansion.

Trading data shows that SHIB needs to maintain its position above $0.000029 to preserve its current market structure. This price level has emerged as a key support zone following the recent activity surge.

Shiba Inu Price on CoinGecko

The combination of high transaction volumes and increased daily active addresses typically suggests genuine network utilization rather than artificial activity. However, the sharp decline in both metrics after the initial surge indicates a rapid cooling of market interest.

Market participants have noted that such spikes in network activity often correlate with price movements, though this relationship isn’t guaranteed. The data shows that during previous network growth phases, price action has shown varied responses.

The decline in transaction volume from $857 million to $176.94 million represents a 79% decrease from the peak. This substantial reduction in trading activity suggests that many participants who entered during the surge have either reduced their activity or exited their positions.

New wallet creation patterns show that the 7,600 new addresses appeared over a relatively short period, rather than through gradual accumulation. This burst of new participants often indicates heightened market awareness or specific catalytic events.

Daily active address data reveals that the peak of 18,000 active users represents a multi-month high for the network. Historical data suggests that such peaks in user activity often precede periods of increased price volatility.

Technical analysis of the trading patterns during this period shows that volume peaked alongside price action, with subsequent declines in both metrics occurring in tandem. This correlation suggests coordinated market behavior rather than disconnected trading patterns.

The most recent data points indicate that network metrics have stabilized at lower levels following the surge, with daily active addresses and transaction volumes settling into ranges more consistent with historical averages. Transaction counts have returned to pre-surge levels, while new address creation has slowed to typical daily rates.

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