The self-proclaimed Dogecoin killer has been in a major decline over the past year, posting an additional 15% plunge in the last 30 days.
Investor confidence has taken a hit; trader interest has been steadily falling, yet one bullish signal suggests the tide could soon turn in the bulls’ favor.
Finally, Some Good News
Shiba Inu currently trades around $0.0000055 and ranks as the 37th-largest cryptocurrency, with a market capitalization of about $2.9 billion. However, the declining number of coins stored on exchanges hints it may soon climb the ladder and regain lost ground.
According to CryptoQuant data, the figure recently fell to roughly 86 trillion, the lowest level since April 2021. This is generally interpreted as a bullish signal because it reduces the immediate selling pressure.
The resurgence of the burning mechanism is also worth noting. The burn rate has exploded by over 635% in the last 24 hours after almost 11 million tokens were sent to a null address. This may seem like a ray of hope, but the USD equivalent of the stash remains insignificant, so the team and community should intensify efforts to make a tangible impact.
X user Crypto With Gopal claimed SHIB has recently printed a triple-bottom formation on its one-hour chart, with bulls defending the $0.0000047-$0.0000048 zone. In his view, sentiment has turned “cautiously bullish,” with an upside target of $0.0000058 if buyers break above the $0.0000052-$0.0000053 range.
Giannis Andreou also recently weighed in. He believes a successful defense of around $0.000004922 could set the stage for a rebound toward $0.000006248, followed by $0.000006687.
“The projected route includes pullbacks between advances, gradually rebuilding toward $0.000007796. Clearing that resistance would bring the higher marked level at $0.000009071 into focus,” he added.
The Big Bearish Factor
Contrary to the bullish elements mentioned above, interest in SHIB and meme coins in general has diminished lately, making a potential recovery challenging.
Meanwhile, Shibarium’s activity has also been negligible. Shiba Inu’s layer-2 scaling solution aims to lower transaction fees, improve speed, and strengthen the overall ecosystem, but over the past several months, the protocol has processed far fewer daily transactions, shrinking to just thousands and even hundreds.
This suggests user engagement and network demand have weakened considerably, which could further weigh on investor sentiment and limit SHIB’s upside potential.
The post Key Shiba Inu (SHIB) Metric Falls to a 5-Year Low: Good News for the Bulls? appeared first on CryptoPotato.
