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Due in part to a noticeable increase in network activity, Shiba Inu has displayed indications of fresh bullish momentum. Between Aug. 7 and 9, the daily unique wallet count increased by about 30% from about 3,000 to almost 4,000, according to recent on-chain data. Even though this metric has since fallen back below 3,000, the brief spike is still noteworthy because it shows that new players are becoming interested in joining the SHIB ecosystem.
How fresh wallets help SHIB
Such spikes in the creation of new wallets have historically occurred before levels of market activity have increased, which may supply the liquidity and trading volume required to maintain an upward trend. Technically speaking, SHIB just broke above a rising trendline resistance that has served as a price ceiling for a number of weeks.
An attempt by buyers to retake control of the market structure is suggested by this breakout. The 200-day EMA, which is currently serving as a potent resistance level, presents the next major obstacle. The door to additional gains may open with a clear close above this level. The 50-day EMA is getting closer to a bullish cross above the 100-day EMA, which increases the bullish potential.
Bullish outlook
Given the current price direction, an additional 10% increase from current levels could trigger this crossover. A signal like this is usually seen as a medium-term bullish confirmation, which could draw trend-following traders and strengthen the upward trend. Nonetheless, a short-term risk is still there since the recent decline in unique wallet activity.
SHIB will probably require an additional surge in network activity and trading volume to validate the breakout if it hopes to sustain momentum. The move may stall at the 200 EMA in the absence of consistent participation, which could result in consolidation or a retracement. In conclusion, the recent increase in new wallet inflows and Shiba Inu's technical breakout offer a positive environment for a possible price recovery.
SHIB may signal the beginning of a longer-term uptrend if it can break through the 200 EMA and cause a bullish EMA crossover. Whether this recent resurgence gains enduring traction will be determined in large part by the upcoming sessions.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team