**Shiba Inu (SHIB) Displays Potential for Bullish Breakout Amid Increased Network Activity**
Shiba Inu (SHIB) appears to be on the verge of a bullish breakout, following an extended period of consolidation. Several pivotal indicators suggest a shift towards upward momentum. The recent interest rate cut by the Federal Reserve has revitalized the cryptocurrency market, leading to a noticeable increase in SHIB’s price, thus boosting trader confidence and creating a strong likelihood of a significant price surge.
The Federal Open Market Committee (FOMC) recently announced a cut in interest rates by 50 basis points, which has positively impacted the overall cryptocurrency landscape, including Shiba Inu. Just two weeks ago, SHIB was trading at $0.000012, with investors expressing concerns over a potential bearish trend. However, following the rate reduction, the price has risen to $0.000014, signaling renewed optimism among traders.
This interest rate cut has improved market liquidity, encouraging investors to embrace greater risks, which in turn has directly affected SHIB’s price. Both retail and institutional traders are re-entering the market, anticipating further price increases driven by enhanced liquidity and heightened network activity.
**On-Chain Metrics Reinforce Positive Outlook**
A crucial indicator of Shiba Inu’s present trajectory is the price-Daily Active Addresses (DAA) divergence. At the time when the price reached $0.000012, the price-DAA relationship was negative, suggesting that the price increase lacked sufficient backing from blockchain activity. This indicated that such price movements were likely unsustainable.
However, the dynamics have shifted. The price-DAA divergence has turned positive at 15.90%, indicating that the recent price rally in SHIB is supported by a growing number of users on the Shiba Inu network. Increased network activity is essential for sustaining upward momentum, and this transformation suggests that SHIB may be poised for additional gains.
This optimistic perspective is further supported by a rise in SHIB derivatives volume, as reported by Coinglass data. Until now, spot and derivatives markets had been relatively quiet, but the uptick in trading volumes points to a growing interest in the token. This trend coincides with a positive shift in the funding rate, indicating that traders are more inclined to hold long positions, anticipating continued price appreciation.
**Key Support Levels Bolster SHIB’s Position**
Technical indicators for Shiba Inu also reveal signs of robustness. According to data from IntoTheBlock’s In/Out of the Money Around Price (IOMAP), approximately 10,580 addresses hold 44.45 trillion SHIB tokens at an average price of $0.000014. This price level is now regarded as a significant buy zone, as many tokens were acquired at this price point.
The $0.000014 level holds considerable importance both from a market structure standpoint and in alignment with other technical analyses, underscoring its role as a potential reversal point. If the price can stabilize at this level, it may create a solid foundation for further upward movement.
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