Shiba Inu Surges 60%, Nears Key Resistance Level
Shiba Inu jumps 60% in a week, driven by rising investor interest and new activity, as it approaches a crucial resistance level.
Shiba Inu (SHIB) has seen a significant price surge, rising over 60% in just a week, and reaching its highest level in six months. This rally comes as part of a broader trend among meme coins, driving SHIB’s value close to a key resistance point. The question on many investors' minds is whether SHIB bulls can break through this level and turn it into a strong support.
One factor behind SHIB’s momentum is the sharp increase in activity on its network. Data shows a 346% rise in daily active addresses, as more users participate in SHIB transactions. Additionally, new addresses created specifically for trading SHIB have jumped by 458%, indicating that a wave of new investors is entering the market. This rise in active and new addresses points to growing interest and broader market involvement, supporting a bullish outlook for SHIB.
Another sign of SHIB’s potential for growth is its rising open interest, which currently stands at levels not seen since May. Open interest, representing the number of unsettled contracts in the market, has increased by 12% in the last day. When open interest grows alongside an asset's price, it suggests fresh liquidity is entering the market—a positive indicator that often signals further price gains.
If the current trend continues, SHIB could soon break through its current resistance level, opening the door for even higher prices. Analysts predict that clearing this hurdle could set SHIB on track to reach levels last seen in early spring. However, a shift in market sentiment or a wave of profit-taking by investors could lead to a pullback, with SHIB possibly seeking support at a lower price level if this happens.
For now, the bullish momentum remains strong, backed by increased network activity, new market participants, and rising liquidity. Whether SHIB can maintain this upward path will depend on continued investor interest and broader market conditions. The coming days could be pivotal for SHIB, as it edges closer to breaking through a crucial price barrier.
