Shiba Inu’s price finally broke above $0.000033 on March 28, up 38.2% in the past week, while market indicators highlight the key catalysts behind the ongoing price breakout.

With 6% gains in the last 24 hours, Shiba Inu (SHIB) has emerged as the second-best performing asset among the top 50 ranked memecoins.

SHIB surges 38% after weeks of consolidation

On March 5, Shiba Inu’s price surged to a three-year peak of $0.000045 amid a historic memecoin market boom. Since then, SHIB has slid into a two-week consolidation phase, as Solana memes like Dogwifhat (WIF), BONK, and SLERF took center stage.

Between March 5 and March 20, SHIB’s price dipped 47.9%, but as the market demand slowed during those two weeks, existing holders showed remarkable resilience.

While media coverage tilted overwhelmingly towards the Solana meme ecosystem in mid-March, majority of the existing Shiba Inu holders held firm, enabling SHIB price to avoid downswing below the critical $0.000029 territory, until the market momentum swung bullish again around March 20.

As seen in the chart, the Shiba Inu price has been on an upward trajectory over the past week. With five green candles out of the last eight, SHIB’s price has surged 38.2%.

Looking beyond the SHIB price action, vital market indicators reveal major bullish catalysts behind the latest momentum swing.

Shiba Inu adoption rate surges above 30-day average

On March 28, Shiba Inu outperformed every listed memecoin except Dogecoin with 6% gains in the last 24 hours. A closer look at underlying on-chain data trends shows that the ongoing rally is mainly driven by new entrants bringing in fresh capital.

IntoTheBlock’s new adoption rate metric tracks the total percentage of transactions on a blockchain network that new users executed.

Shiba Inu (SHIB) price vs. New adoption rate | March 2024 | Source: IntoTheBlock

According to the latest data, 45.9% of all SHIB transactions on March 27 involved a new wallet conducting its very first transaction. Notably, that figure is significantly higher than the 30-day average, which currently stands at 40.3%

Strategic investors consider it a bullish signal when a cryptocurrency network experiences unusual transaction growth from new users for two reasons.

A rise in transactions from new users indicates growing adoption and interest in the Shiba Inu network, potentially leading to an expanded user base and increased network activity.

Secondly, higher participation from new users can contribute capital inflows and increased liquidity for the SHIB, providing greater market depth to support the upward price momentum.

Shiba Inu’s social media mentions up 63% in 24 hours

This week, increased media buzz surrounding Shiba Inu is another key bullish catalyst behind the positive price action. Santiment’s Social volume scorecard below ranks crypto projects according to the number of mentions pulled across relevant crypto media channels.

Shiba Inu (SHIB) Social volume, March 28, 2024 | Source: Santiment

In the memecoin sector, Shiba Inu currently ranks second behind Dogecoin (DOGE) in active social media mentions, with a 63.5% surge in media traction in the last 24 hours.

The price action of memecoins, arguably more than any other crypto sector, leans heavily on media narratives and community activities. Hence, a surge in volume of social media mentions is often seen as a leading indicator of potential price movements, as it reflects increased attention and sentiment within the community.

If this historically-proven assumption holds, and media traction persists SHIB traders can anticipate further price gains in the days ahead.

Shiba Inu price forecast: $0.00004 target beckons

Shiba Inu’s price rally to $0.000033 on March 28, brings its monthly gains to the 182% mark. Based on the rapid capital inflows from new users and 63.5% surge in social media traction, Shiba Inu price is on track to hit $0.00004 mark and possible close the month with gains in excess of 200%.

However, to validate this optimistic forecast, SHIB’s bulls first have to scale the looming sell-wall at the $0.000035 mark, which coincides with the upper-limit of the Bollinger band indicator.

Shiba Inu (SHIB) price forecast | Source: TradingView

If the capital inflows from new entrants generate sufficient momentum, SHIB’s price could stage a decisive breakout above the $0.000035 resistance and head toward the $0.000045 territory.

Conversely, with nearly 200% month-on-month gains, holders could enter a profit-taking frenzy at any moment. In that scenario, SHIB price could tumble towards the $0.00002 area.