- Shiba Inu's network growth took a turn for the better.
- Circulation dropped, indicating a bullish bias for the meme.
Between October and the time of writing, over 30,000 Shiba Inu [SHIB] non-zero addresses became wallets with a balance, AMBCrypto discovered.
Thanks to Glassnode's data, we were able to find that the non-zero addresses were 1.33 million in October. But at the time of writing, the metric had increased to 1.36 million.
The increase in non-zero addresses is a sign that traction on the Shiba Inu network was growing. It also means that more market participants are adopting SHIB and making their first transactions involving the token.
Source: Glassnode
Only up for SHIB?
In recent times, Shiba Inu has been subject to whale interest. This sparked speculation that the memecoin could be in position for a major move. Now, the increase in non-zero addresses confirmed that the retail cohort was not left out.
At press time, SHIB's price was $0.000010. The value, a 31.74% increase in the last 30 days, helped its market cap jump to 16th place. This was also a testament to Shiba Inu's recovery from a long-term decline.
Besides the increase in network growth, there has also been a jump in Open Interest.
Open Interest has some connection with a cryptocurrency's price. The Open Interest is the total number of open positions left within a particular timeframe. As of this writing, SHIB's Open Interest was $24.08 million.
Source: Coinglass
The top is not here
Should the Open Interest continue to increase and SHIB maintains its uptrend, then the price may surpass the $0.00001 region. Another indicator to consider was Social Dominance.
AMBCrypto employed Santiment's data in evaluating this metric.
Social Dominance gauges the share of discussion around an asset in the crypto market. When the Social Dominance spikes to a high reading, it is a sign that the said asset may have hit the top.
For Shiba Inu, the Social Dominance fell to 0.36% at press time, suggesting that SHIB was close to its bottom at press time.
On-chain data was also helpful in checking SHIB's Relative Strength Index (RSI). On a 4-hour basis, SHIB's RSI was 65.22.
While the reading was a decline from what was on the 23rd of December, it still indicated that SHIB had great buying potential.
If the RSI heads back in the upward direction, SHIB's price might move higher than it has in the last seven days.
Source: Santiment
In terms of circulation, data showed that it has decreased to 673.82 billion. Circulation shows the number of tokens engaged in transactions. So, the decline implied less use of SHIB in the last few days
How much are 1,10,100 SHIBs worth today?
However, the decline in the metric one could be bullish for SHIB.
Source: Santiment
This is because there is a less likely chance of selling pressure that could plunge SHIB's price. Hence, shorts may find it challenging to be profitable, while longs may have a chance at gains.
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