The number of new addresses joining the Shiba Inu network have risen by 19.72% over the past week. The same is essentially a good sign, for it marks the incline in the number of fresh entrants into the ecosystem.
Whenever improvements on the on-chain front are noted, the underlying price of any asset tends to react. SHIB, however, has not been able to rally with that much thrust of late. The likes of Cardano, Solana and other top coins have fetched their investors with double digit gains over the past week. SHIB investors have, however, only earned 7%.
In fact, on the short time-frame charts, the price of the asset has already started registering horizontal movements. Over the past day, SHIB noted a mere 1% price deviation, while on the hourly, it was down by almost 0.5%.
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What’s Holding Back Shiba Inu’s Price?
The lack of participation could be a reason. Shiba Inu active addresses have dropped by 3% in the same one-week timeframe, and perhaps, that is currently holding back its price. An address is considered to be active when it becomes a direct participant in a successful transaction.
Conventionally, the higher the number, the better, for it hints towards improving participation by traders and investors. The ongoing downtrend, evidently, is not encouraging.
Furthermore, the number of SHIB bulls and bears have been exactly equal in number of late. This means that their trades are likely negating or cancelling out each other, leaving prices unaltered over the short term.
Data from IntoTheBlock revealed that the SHIB ecosystem comprised 91 bulls and 91 bears. Simplistically, the bulls and bears indicator tracks the number of addresses that purchased or sold more than 1% of the total amount of volume traded on a given day. So, those who bought more than 1% of the total volume are bulls, and those who sold more than 1% fall under the bears category.
Clearly, neither of them have a positional advantage at this stage. So, only when improvements on this and the activity fronts are noted, Shiba Inu’s price will be able sustainably rally.
Source: ITB
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