After an uphill 14-day battle, the Shiba Inu (SHIB) price broke above the $0.0000080 territory on Friday, July 28. The on-chain data reveals several bullish signals that could support a sustained breakout in SHIB price.
The Shiba Inu (SHIB) price has been locked in sideways price action amid uncertainty surrounding the launch of the “Shibarium” product in recent weeks. However, a flurry of updates on the progress of the latest Ethereum-Shibarium bridge product seems to have generated positive media buzz.
Will the growing optimism among Shiba Inu owners evolve into a sustained breakout in the price of the SHIB?
Over the past few months, the highly anticipated Shibarium product launch has generated significant media buzz. On July 26, Shiba Inu, marketer, Lucy announced that “the Shibarium Beta Bridge has been released for public testing.
On-chain data shows that the media coverage has sparked optimism in the global Shiba Inu community. As a guideline, the SHIB Social Volume metric maintained a steady upward trend throughout July.
On July 2, the Shiba Inu Social Volume score was 44. And on July 29, it increased by 280% to 170.
Social volume data provides insight into the level of media coverage a blockchain network is currently drawing. It aggregates the total number of mentions of the project on relevant crypto social media channels.
Generally, when the social volume increases, it signals that investors are more and more interested in the project. If media interest shifts towards demand, this could help build bullish momentum for SHIB heading into August 2023.
Falling FX supply could trigger a price breakout
According to Santiment, the Shiba Inu exchange supply dropped to a 2-year low of 83 trillion in July 2023. As exchange supply and trading activity dry up, it appears that SHIB holders expect imminent price gains through upcoming product development.
Essentially, they are increasingly opting for longer-term self-custody storage rather than looking for short-term sell opportunities on exchanges.
Between July 18 and July 29, the Shiba Inu trade supply increased from 86 trillion to 83.4 trillion SHIB >
Supply on exchanges tracks the number of tokens that investors have currently deposited into crypto exchange wallets. When FX reserves rise to historic lows, as seen above, this signals that bulls are doubling down.
This sharp decline in FX supply, ahead of the launch of Shibarium, could spark positive SHIB price action in the coming weeks.
SHIB Price Prediction: On Track To Reclaim $0.00001?
Considering the growing hype and dwindling exchange supply, $0.00001 seems a realistic price target for SHIB.
But currently, the bulls might face significant resistance around the 0.000009 mark. 368,000 investors who bought a total of 270 trillion SHIB tokens at the minimum price of $0.000009 could trigger a pullback.
If this critical resistance level breaks down, the Shiba Inu price break could see it recover $0.000010.
Still, Shiba Inu bears may invalidate the bullish narrative if SHIB breaks below $0.000007. But as seen above, some of the 208,000 addresses that bought 89 trillion SHIB tokens at an average price of $0.000008 could offer some support.
But if the bears break down this support level, Shiba Inu could fall towards 0.000006.
Disclaimer
In accordance with Trust Project guidelines, this price analysis article is provided for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased reports, but market conditions are subject to change without notice. Always do your own research and consult a professional before making financial decisions.