In November, Shiba Inu (SHIB) coin saw the opening of 7,548 new wallets as the token witnessed an increase in value.
According to Santiment data, the increase in wallet numbers was observed at the same time when SHIB experienced a 72% rise in the price within a month. This indicates increased activity and community involvement.
This increase in the new wallet creation shows that more people are using the Shiba Inu blockchain.
Experts claim that the increased adoption can be explained by the growing effectiveness of Shiba Inu coin. And its use cases in various Decentralized Finance applications.
Metrics like these suggest that the network is becoming more popular and is likely to attract even more participants in the future.
Address Activity on the Rise as SHIB Gains Momentum
According to IntoTheBlock, the number of addresses that interacted with Shiba Inu has gone up. In the last one week, new addresses went up by 62.54%, while active addresses rose by 57.88%.
These statistics suggest an increase in engagements from SHIB holders who are known to engage in higher trading activities leading to high liquidity.
Zero-balance addresses also increased by 62.01% indicating profit taking and reinvestment by the investors at different levels.
Previous analysis indicates that such high levels of address activity are often followed by price rises. The price rise occurs due to the market participants exploiting trading possibilities and affirming Shiba Inu market structure.
Large-Scale Inflows Signal Whale Interest
Major holders have been seen pouring in more Shiba Inu tokens in November. These inflows increased by 1,270.02% in a month highlighting the interest of key investors in the market.
In the last week, large inflows have increased by 4.78%, and this further supports the growth of SHIB’s price.
The significant rise in inflows shows that large investors still believe in the continued appreciation of Shiba Inu.
Within the last three months, the total inflow has risen by 906.55%. Thus indicating that whales are still active in accumulating more coins.
This is largely because of the current market conditions that are ideal for long-term investment.
Why Shiba Inu Price Could Double
As Shiba Inu continues to rise, experts have highlighted some factors that are supporting the token’s bullish trend. SHIB is now trading near a critical resistance level of $0.00003250.
If it crosses this mark, market analysis shows that it has the potential to rise by 83% which could pretty much double the price of the token.
Moreover, the 24-hour Bollinger Bands on the SHIB/USD chart depict a constricted range, which may imply a period of low volatility and a possible price breakout.
The recent price action which has hit the upper band indicates that there is buying pressure. However, consolidation or a steep price move should be expected if it breaks the band boundaries.
Other factors that have also contributed to this include increase in trading volumes and burn rates within the Shiba Inu ecosystem.
In the last one day alone, the burn rate increased by 3,162% with over 2 billion tokens being burnt. This reduction in supply, along with an increase in demand, is good for price appreciation.
As of press time, SHIB is up by over 20.55% in a week and is trading at $0.00002891.
The market capitalization rose by 1.79% to $17.04 billion when the daily trading volume jumped by 57% to $2.55 billion.
 price surges with a 20.55% weekly rise, trading at $0.00002891, as wallet creation and trading activity...){kind=link}