After a 14-day uphill battle, Shiba Inu (SHIB) price broke above the $0.0000080 territory on Friday, July 28. On-chain data reveals multiple bullish signals that could support a sustained SHIB price breakout.
Shiba Inu (SHIB) price has been stuck in a sideways price action amid uncertainty surrounding the “Shibarium” product launch in recent weeks. However, a flurry of progress updates on the latest Ethereum-Shibarium bridge product appears to have generated some positive media buzz.
Will the growing optimism among Shiba Inu holders evolve into a sustained SHIB price breakout?
Over the last few months, the much-anticipated Shibarium product launch has generated significant media buzz. On July 26, Shiba Inu, Marketing Specialist, Lucie announced that “the Shibarium Beta Bridge has gone live for public testing.”
On-chain data shows that the media coverage has raised optimism across the global Shiba Inu community. In indication, SHIB Social Volume metric has maintained a consistent uptrend throughout July.
On July 2, Shiba Inu Social Volume score stood at 44. And by July 29, it has increased by 280% to reach 170.
The Social Volume data provides insight into the level of media coverage that a blockchain network is currently pulling. It aggregates the total mentions of the project across relevant crypto social media channels.
Generally, when Social Volume rises, it signals that investors are becoming increasingly interested in the project. If the media interest evolves into demand, it could help build up bullish momentum for SHIB heading into August 2023.
The Decline in Exchange Supply Could Trigger a Price Break Out
According to Santiment, Shiba Inu exchange supply dropped to a 2-year low of 83 trillion in July 2023. As the exchange supply and trading activity dries up, it appears that SHIB holders are HODLing expecting impending price gains from the upcoming product development.
In essence, they are increasingly opting for longer-term self-custody storage rather than seeking short-term selling opportunities on exchanges.
Pointedly, between July 18 and July 29, Shiba Inu exchange supply has reduced from 86 trillion to 83.4 trillion SHIB>
Supply on Exchanges tracks the number of tokens that investors currently have deposited in crypto exchange wallets. When exchange reserves increase drop to historic lows, as observed above, it signals that the bulls are doubling down on their positions.
This large drop in exchange supply, ahead of the Shibarium launch, could stir up positive SHIB price action in the coming weeks.
SHIB Price Prediction: On Course to Reclaim $0.00001?
Considering the growing media hype and dwindling exchange supply, $0.00001 seems a realistic price target for SHIB.
But currently, the bulls could face significant resistance around the 0.000009 mark. 368,000 investors that bought a total of 270 trillion SHIB tokens at the minimum price of $0.000009 could trigger a pullback.
If that critical resistance level folds, then Shiba Inu price breakout could see it reclaim $0.000010.
Still, the Shiba Inu bears can 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 the average price of $0.000008 could offer some support.
But if the bears pull down that support level, Shiba Inu could drop toward 0.000006.
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.