Shiba Inu (SHIB) price soared 15% on Wednesday after the dev team launched a much-heralded NFT-based merch collection. On-chain data reveals that crypto whales have increased their trading activity significantly. Are there more SHIB gains ahead?
On June 21, prominent pseudonymous Shiba Inu developer, “Shytoshi Kusama,” announced “Shibacals: Authenticated Collectibles” in a blog post. The merch collection is designed to “enable the functionality to link real-world assets to NFTs” within the Shiba Inu ecosystem.
Within 24 hours, Shiba Inu price pumped 15% to briefly scale the $0.000008 resistance for the first time in two weeks. On-chain data suggest that bullish whales are buying big into the SHIB NFT-merch hype.
Here’s why SHIB price could experience more gains in the coming weeks.
Crypto Whales Are Buying Big Into the SHIB NFT-Merch Hype
Over the past week, Shiba Inu whale investors have increased their trading activity considerably. IntoTheBlock data below shows that only 10 SHIB Whale transactions where recorded on June 17. As seen below, that figure has since soared 740% to 74 transactions at the close of June 23.
Large Transactions tracks the activity of whale investors and high-net-worth traders by summing the daily number of confirmed transactions that exceed $100,000.
The chart above shows a 740% increase in the trading activity of crypto whales investing in SHIB. All within a week. Unsurprisingly, this has already impacted SHIB’s price positively this week.
If the whales can keep up this level of trading activity, SHIB could build on the 15% gains to end June 2023 strongly.
Shiba Inu Network Value is Improving
According to on-chain data, SHIB network value has improved significantly over the past week.
Santiment’s Network Value to Transaction Volume (NVT) ratio assesses the growth of a cryptocurrency’s market value relative to the underlying transactional activity.
Between June 17 and June 23, the NVT ratio dropped 74% from 701.71 to 183.72.
In simple terms, when the NVT ratio is reduced, as seen above, it indicates that the underlying economic activity is growing faster than price. This suggests that the recent price rally was not likely powered by organic growth in network activity rather than market speculation.
In conclusion, the whales are likely to keep buying if the strategic newly-launched SHIB NFT merch is well-received in the global SHIB community. Ultimately this could lead to more price gains for SHIB holders.
SHIB Price Prediction: Is a Rally to 0.000013 On the Cards?
According to IntoTheBlock’s Break-Even Price distribution data, Shiba Inu will likely enter a bullish upswing toward $0.000013.
But currently, the 42,750 investors that bought a total of 12.4 trillion SHIB tokens are expected to pose considerable resistance when the price approaches its break-even zone at $0.000008.
If that resistance folds as expected, the Shiba Inu price will likely reach $0.000013.
Still, the Shiba Inu bears can negate this bullish narrative if the SHIB price drops $0.000006. But as seen above, some of the 51,230 addresses holding 19.55 trillion SHIB tokens at that price range could offer significant support.
But if that support level does not hold, the Shiba Inu bulls could drop as low as $0.000005.
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.