Shortly before SHIB price breakout, Shiba Inu network activity reached yearly high
Shiba Inu network activity has reached an all-time high, according to famous analyst Ali Martinez, who cites data from the Santiment portal.
By the end of March, Shiba Inu reportedly had its most significant daily spike of active addresses in 2023, with approximately 36,000 SHIB addresses transacting on the network.
#ShibaInu saw the largest spike in daily active $SHIB addresses over a year, with ~35,788 unique #SHIB addresses interacting on the network! pic.twitter.com/gNoH7UrYgf
— Ali (@ali_charts) April 1, 2023
Surprisingly, the increase in network activity with Shiba Inu tokens happened shortly before the SHIB price breakout following a protracted accumulation period and a drop in volatility.
After two weeks of trading in a range defined by the 7.8% drop on March 15, the SHIB price exploded in activity in the last days of March, rising more than 9%.
One would think it was about insiders or whales anticipating and capitalizing on the upcoming price action. Yet, as detailed statistics from IntoTheBlock demonstrate, most transactions conducted during the spike in network activity were in the $10-$100 range. In addition, there were 578 transactions involving Shiba Inu tokens worth $10,000 to $100,000.
During this time, SHIB had 51 truly significant transactions. 50 were for amounts ranging from $100,000 to $1 million, with only one for an amount greater than that but less than $10 million.
Shiba Inu successfully breaks out from symmetrical triangle, which might put it to new local highs
SHIB has effectively broken through the local resistance level denoted by the upper border of a symmetrical triangle. This development points to a possible positive trend for the meme-based cryptocurrency, which has risen 9.6% in value in the last three days and has reached the 200-day moving average.
Symmetrical triangles are important in technical analysis because they indicate a consolidation phase in which the price moves inside converging trendlines representing support and resistance levels. TradingView is the source. These patterns usually appear when the market is undecided, and the purchasing and selling pressures are balanced.
SHIB/USD 1-day chart | Source: TradingView
The price action becomes progressively compressed as the triangle’s apex approaches, resulting in a strong breakout in either an upward or downward direction. The breakout occurred on the upside in the case of Shiba Inu, indicating a bullish trend.
The successful breach of the upper border of the symmetrical triangle implies that purchasing pressure has surpassed selling pressure, indicating a possible entry point for investors who believe in the token’s growth potential. But, while the breakout appears positive, there is always the chance of a false breakout, which might result in a fast reversal.
Positive market sentiment, greater adoption, and strong community support are all elements that have contributed to SHIB’s recent price gain. As the token gains traction, it will be critical for the development team and community to capitalize on this momentum and work toward creating a long-term ecosystem for the project.
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