Shiba Inu (SHIB) Price Predicted to Outshine Dogecoin This Week

Key Insights: 

• Shiba Inu (SHIB) price soared as high as $0.000011 on Monday, Jan 1, up 6% from its weekly low of $0.0000103 recorded on boxing day. 
• On-chain data trends show that Shiba Inu user traction has outpaced Dogecoin network growth over the past week. 
• Historical buy/sell trends identify the critical sell-walls that SHIB bulls must scale to capitalize on the growing network usage. 

Shiba Inu (SHIB) price made a positive start to 2024, rising to a daily peak of $0.0000106 on Monday, Jan 1. On-chain analysis examines how a rapid rise in Shiba Inu network activity has contributed to its 6% price rebound from its weekly low of $0.0000103 recorded on boxing day. 

Will SHIB price outperform Dogecoin (DOGE) for the second consecutive week? 

Shiba Inu Network Activity On the Rise, While Dogecoin Traction Slows  

Shiba Inu price since Dec 26 has outperformed Dogecoin by about 2%. While SHIB price has increase 6%, DOGE price has only managed a modest 4% upswing between Dec 26 and Jan 1. A critical on-chain metric suggest that SHIB is in prime position to outshine DOGE for a second consecutive week. 

During last week’s rally, SHIB attracted a significant increase in Daily Active Addresses —a critical measure  of fundamental network traction and demand. But conversely, the trend has been negative for Dogecoin. 

As depicted in the Santiment chart below, SHIB Daily Active Addresses (yellow bars) has increased from 25,462 on Dec 26, to 20-day peak of 27,552 at press time on Jan 1. This represents an 8% growth in network demand in less than one week. 

On the flip side, DOGE Daily Active Addresses (red bars) has declined 26% from 966,230 to 744,490 unique wallets between Dec 26 and Jan 1. 

In simple terms, the Daily Active Addresses (7d) sums up the number of unique addresses carrying out transactions on a blockchain over a seven-day period. 

When Daily Active Addresses increases during a price rally, it suggests the the rally is being driven by an organic boost in fundamental network usage, rather than mere market speculation. 

This alignment suggest that, as the Shiba Inu network value strengthens, SHIB price could enter another leg-up and sustain higher support levels. Meanwhile, the negative divergence between Dogecoin price and network user cout over the past week is a tell tale sign of an incoming correction. 

Shiba Inu vs. Dogecoin Price Forecast: How Far Can SHIB Price Go? 

From an on-chain perspective, Shiba Inu price looks set for another leg-up this week, while Dogecoin price remains at risk of a pull-back. But, for Shiba Inu bulls to fully capitalize on this growing network demand, the must first scale the elusive $0.000014 resistance.

The Global In/Out of the Money Around Price (GIOM) data, which groups the current SHIB holders according to their entry prices, also affirms this outlook. 

It shows that 87,470 current holders had bought 421.99 trillion SHIB at an minimum price of $0.000014. Considering that they have been holding unrealized losses for more than a year, majority of them could look to exit once SHIB price approaches their break even point. 

Hence, if the bullish scenario plays out in the days ahead, Shiba Inu price could retrace again in from the $0.14 area.  

But if the Shiba Inu network growth evolves into a sustained increase in market demand,  SHIB price could generate enough momentum to smash  that resistance and edge toward reclaiming $0.000020.

On the flip side, the bears could invalidate that positive prediction if SHIB price dips below the critical psychological resistance at $0.00008 support.