SHIB’s Price Unaffected by Upward On-Chain Metrics

Crypto News- In a recent YouTube presentation, an analyst associated with the cryptocurrency trading and analysis channel ClayBro shed light on a noteworthy development within the Shiba Inu (SHIB) network. Over the past week, there has been a remarkable surge of 198.4% in the number of addresses holding zero SHIB tokens. However, the analyst issued a cautionary note, suggesting that this surge might not exert a significant influence on SHIB’s price dynamics.

SHIB’s Price Unaffected by Upward On-Chain Metrics

The ClayBro analyst articulated that the proliferation of wallet addresses devoid of SHIB holdings should not be hastily regarded as a significant milestone. These wallets may not be actively participating in transactions within the network at present. Nonetheless, the analyst remained open to the prospect that these zero-balance addresses could potentially become more engaged in network activities in the future.

A deeper dive into SHIB’s on-chain metrics presents a somewhat mixed picture. The analyst’s investigation revealed a 21% decrease in the creation of new wallets on the SHIB network. In contrast, there has been a rise in the number of active addresses. While heightened transactional activity may be perceived as a positive indicator, the analyst was quick to point out that this activity encompasses both buying and selling. Therefore, the analyst posited that this specific metric may not necessarily translate into a price increase for this meme coin.

Turning to the technical aspect, at the time of the report, SHIB was trading below the 20-day Exponential Moving Average (EMA) line. Additionally, the cryptocurrency has been in a consolidation phase, oscillating between the price range of $0.00000700 and $0.00000755 for the past three weeks.

In the event that SHIB succeeds in closing a daily candle above the 20-day EMA line, positioned at $0.00000732, it could potentially break free from its current consolidation phase and set its sights on a target around $0.00000847 over the next couple of weeks. Conversely, a breach of the lower boundary of the consolidation channel might lead SHIB to experience a decline, potentially reaching as low as $0.00000633.