Despite the rising on-chain metrics for Shiba Inu (SHIB), an analyst from ClayBro suggests that the cryptocurrency’s price may remain stagnant. The analyst’s prediction comes amidst a significant increase in SHIB’s 7-day zero balance address count, even though the creation of new wallets on the SHIB network has seen a decrease.
Understanding the Surge in Zero Balance Addresses
According to a recent YouTube video by ClayBro, a well-known cryptocurrency trading and analysis channel, there has been a whopping 198.4% surge in SHIB’s 7-day zero balance addresses. However, the analyst was quick to point out that this increase does not necessarily signal a potential rise in SHIB’s price. He elaborated that while an increase in wallet addresses with no SHIB may seem like a positive development, it loses its significance considering these wallets may not actively participate in network transactions.
However, the analyst did not entirely dismiss the possibility of these zero balance wallets becoming active in the future.
Decrease in New Wallet Creation
Despite the surge in zero balance addresses, a closer look at the rising on-chain metrics reveals a decrease in the creation of new wallets on the SHIB network. The analyst notes a roughly 21% drop in the number of new wallets being created. Interestingly, the number of active addresses has seen an increase. This could suggest an increase in transactional activity on the SHIB network.
However, the analyst warns that this activity could involve both buying and selling, which means that this particular uptick may not necessarily result in a price increase for the meme coin.
Technical Analysis of SHIB’s Price
From a technical perspective, SHIB is trading below the 20-day EMA line. The altcoin has been stuck in a consolidation phase between $0.00000700 and $0.00000755 for the past three weeks. If SHIB manages to close a daily candle above the 20-day EMA line, currently at $0.00000732, it might finally break free from this consolidation phase and rise towards $0.00000847 over the next couple of weeks. On the other hand, if SHIB breaks below the lower level of the consolidation channel, it could potentially fall to $0.00000633.
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