- The network activity declined alongside the price.
- SHIB’s potential to reach $0.000086 remains a feasible one.
If Shiba Inu [SHIB] is the alpha you think it is, then the meme coin may have offered a buying opportunity. At press time, SHIB’s price changed hands at $0.000031—a 9.10% decrease in the last 24 hours.
This performance was contrary to the last 30 days “pumpamentals” when the price climbed almost 3x.
For those uninitiated, pumpamentals is a combination of the words “pump” and “fundamentals”. It refers to a situation when a cryptocurrency’s features lead to a price jump.
For Shiba Inu, this came into play as meme coins in the ecosystem registered mind-blowing numbers.
The price is tied-up
For instance, Dogecoin’s [DOGE] price increased by more than 100%. Floki [FLOKI], on the other hand, recorded a 7x climb within the last months.
Despite the recent drawdown, AMBCrypto’s analysis revealed that SHIB might recover. But what could be responsible for this decline?
One thing that we noticed on-chain was the massive decline in active addresses.
As of the 5th of March, active addresses on the Shiba Inu network were over 55,000, indicating a high level of interaction with the token.
But press time data using Santiment, showed that the metric had declined to 11,800.
Source: Santiment
A closer look at the metric and price action revealed that there seems to be a correlation between them. As the user activity jumped, so did SHIB’s value. Also, when the addresses decreased, SHIB fell.
Therefore, one can conclude that for the price to aim for the moon, significant activity has to return to the network.
SHIB wants to right its wrongs
Irrespective of the current circumstances, crypto analyst Rekt Capital noted that the token might revisit its all-time high. Rekt mentioned this on the 8th of March.
According to him, SHIB could soon hit a re-accumulation phase which could drive more than a 521.40% increase.
Source: X
Should this be the case, then SHIB at $0.000031 seems like a cheap price to purchase the token. But predictions are just what they are — predictions.
Thus, there is no guarantee that the token could rally back to its all-time high of $0.000086.
However, if you are considering the token, then you should look at other aspects of the network. Two other places you can assess are the SHIB burn and the technicals.
To burn and to break: What is next?
According to AMBCrypto’s analysis of the SHIB burn mechanism, the burn increased by 335.58% in the last 24 hours. This meant that 298.71 million tokens were sent out of circulation.
Though the idea behind the mechanism was to help Shiba Inu’s value grow, that has not been consistent.
Sometimes, the price increases alongside the number of tokens burned. Other times, there is a divergence. But the technical perspective offers more.
AMBCrypto’s analysis of the 4-hour SHIB/USD chart displayed the formation of a symmetrical triangle. This is characterized by two converging trendlines connecting the slope of the highs and lows.
After this, the price is either forced to breakout or breakdown.
In SHIB’s case, this pattern could be the start of a new bullish trend. Furthermore, the Relative Strength Index (RSI) had slipped below the midpoint but showed signs of a buying momentum return.
Source: TradingView
Realistic or not, here’s SHIB’s market cap in DOGE terms
The Awesome Oscillator (AO), on the other hand, was negative, indicating that the momentum was still bearish.
Sooner or later, the tides might change. However, if the oscillator flips into bullish negative territory before buying, traders might be forced to deal with lesser gains.
