- Shiba Inu has seen a massive jump in total addresses holding SHIB.
- Unique technical indicators point to an impending bullish rally for SHIB.
Shiba Inu (SHIB), one of the prominent memecoins, has experienced tremendous volatility in recent weeks, riding the waves of both bullish and bearish market conditions.
The rise in the number of SHIB holders in the past few weeks has captured the attention of crypto enthusiasts. However, a recent market downturn has raised questions about the ideal timing for investors to consider loading up on SHIB.
Current Market Overview of SHIB
A well-known crypto-analyst, Ali Martinez, recently shed insights on a critical SHIB metric. According to him, SHIB has witnessed a remarkable 55% surge in the last three months. Despite this promising growth, Ali hinted that a notable challenge lies ahead, as nearly 90,000 addresses hold over 422 trillion SHIB at $0.000016, creating a formidable resistance zone.
#ShibaInu has seen a 55% increase in the last 3 months, staying relatively quiet during the recent altcoin season.
While there's potential for growth ahead, $SHIB faces a major resistance zone. Nearly 90,000 addresses hold over 422 trillion #SHIB at $0.000016. pic.twitter.com/LE6kpLb1Or
— Ali (@ali_charts) December 9, 2023
As of the latest data from Marketcap, SHIB is currently trading at $0.000009666 with a market capitalization of $5.7 billion. The past 24 hours saw a 0.34% decrease in its price, accompanied by a 39.70% drop in trading volume. This reduced volume shows waning investor interest in the altcoin.
While the short-term market outlook may seem bearish, this could be an opportune time for investors to accumulate SHIB tokens. One key metric supporting this thesis is the Network Value to Transactions (NVT) Ratio. Historical trends have shown that low NVT ratio values often coincide with market bottoms and bullish trends. A recent drop in SHIB’s NVT ratio suggests that investors might find the current market conditions favorable for accumulating tokens before a potential bullish momentum.
Analyzing SHIB’s exchange reserves provides further insight into buying pressure. Recent data shows a sharp decline in SHIB’s supply on exchanges, coupled with an increase in supply outside of exchanges. This suggests that retail investors have been actively buying SHIB during the market dip. Although whale activity remained stable, some holders did sell their SHIB holdings.
Shibarium L2 Network and Token Burning
Moreover, on-chain data analytics from IntoTheBlock highlights a historic peak in new SHIB addresses. The upcoming implementation of the Shibarium L2 network’s burning mechanism, set to burn 70% of base fees from processed transactions, is generating anticipation.
The manual phase, starting soon, will be followed by an automatic transition in January, strategically reducing the token supply. Token burn announcements typically trigger price surges, and the recent increase in SHIB addresses aligns with this pattern.
Notably, SHIB’s resilience and unique market dynamics set it apart as a meme coin with lasting appeal. The passionate community behind SHIB remains unfazed by traditional valuation metrics, contributing to the coin’s unpredictable yet powerful market movements.
Looking ahead, SHIB’s success hinges on its engaged community and the strategic implementation of the burning mechanism. Traders closely monitor technical indicators and price movements, leveraging both short-term opportunities and long-term trends, especially in anticipation of the Bitcoin halving.
SHIB’s price predictions suggest a potential trade at $0.000015 by the end of 2024 if bullish trends persist. Conversely, bearish trends could see SHIB trading at $0.000012 by the same period.
