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Can Shiba Inu (SHIB) Holders’ Confidence Spark Price Recovery?
Since reaching a yearly high of $0.000035, Shiba Inu (SHIB) has seen its price drop by nearly 50%. This sharp decline has put the meme coin in a critical position, leading the broader market to shift its focus to other cryptocurrencies.
As of now, SHIB is trading at $0.000014. Despite this significant downturn, token holders appear determined to hold on and are not yet ready to abandon their positions.
Shiba Inu Is Neither “Here” Nor “There”
According to IntoTheBlock, Shiba Inu’s Coin Holding Time has increased by 42% over the last seven days and by 107% in the last 30 days. Coin Holding Time measures how long holders keep an asset without transacting or selling it.
Typically, when the Coin Holding Time decreases, it indicates that holders are offloading the cryptocurrency, which could lead to a price drop. However, an increase in holding time suggests growing confidence in the asset’s mid to long-term potential. For Shiba Inu (SHIB), this increased holding time could provide some price stability if sustained.
Read more: 6 Best Platforms To Buy Shiba Inu (SHIB) in 2024
Despite the longer holding time, Shiba Inu’s network activity has been declining. For instance, the number of active addresses has decreased over the past seven days. Active addresses reflect user engagement on a blockchain, so a decline suggests reduced interaction with the token.
Similarly, new addresses and addresses with zero balances have also dropped, indicating that new participants might be accumulating other cryptocurrencies while overlooking SHIB.
The contrasting trends of increased holding time and declining network activity put SHIB’s price in a precarious position. While the extended holding time could stabilize the price, the drop in network activity may limit SHIB’s growth potential.
SHIB Price Prediction: Consolidation to Continue
From a technical perspective, Shiba Inu (SHIB) broke out of a descending triangle on August 23, which led to a price increase, hitting $0.000016. The descending triangle is typically a bearish chart pattern, often resulting in further price declines.
Although SHIB initially broke above the pattern, the recent 14% decrease indicates that the breakout might have been false. However, as of now, bulls seem to be making another push to drive the price higher.
If this upward momentum is sustained, SHIB’s price could climb toward $0.000014. Yet, the current buying pressure appears insufficient to maintain the uptrend, which could result in the token trading sideways for some time.
Read more: Shiba Inu (SHIB) Price Prediction 2024/2025/2030
On the other hand, if selling pressure intensifies, SHIB’s price might undergo a significant correction, potentially dropping to $0.000010.
Disclaimer
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